As the Coronavirus Job Retention Scheme draws to a close, employers may face the difficult decision to make some employees redundant. The legislation was introduced at the end of July to protect furloughed employees.
Entitlement
An employee is entitled to statutory redundancy pay if they have at least two years’ continuous employment when they are made redundant. Where an employee has been furloughed during the Coronavirus pandemic, the time that they are on furlough counts as part of their continuous employment.
Amount
The amount of statutory redundancy pay to which an employee is entitled depends on:
- how many complete years they have been employed at the date that they are made redundant;
- their age at the date of redundancy; and
- how much they are paid.
- one and a half week’s pay for each full year the employee was aged 41 or older;
- one week’s pay for each full year the employee was 22 or older but younger than 41; and
- half a week’s pay for each full year that the employee was younger than 22.
For more information on Statutory redundancy pay and furloughed employees, Book a Free Consultation