The government has announced a new law will be passed on the 31st of July 2020 ensuring workers who are currently furloughed under the Coronavirus Job Retention Scheme (CJRS) will receive Statutory Redundancy Pay calculated at their normal level of pay if they are made redundant rather than at the 80% rate of pay which they currently receive whilst on furlough.
The government stated that whilst the majority of employers have provided workers with SRP in line with their usual level of pay, a number of employers have not, and therefore that this law is necessary to protect workers.
SRP is provided for after a worker has completed two years of continuous service for an employer and is calculated on the basis of that workers’ pay, length of service, and age. The announcement was also accompanied by a series of other announcements. The first being that the same measure will also apply to Statutory Notice Pay (SNP).
SNP is the pay received by an employee who has been notified of their employer’s decision to terminate their contract of employment. This notice period can range from 1 week to 12 weeks. During this time employers will be required to pay the SNP in line with the normal and not the furloughed rate of pay received by their employees.
The government has also said that basic awards for unfair dismissal will also be calculated at a worker’s full rate of pay as opposed to the 80% rate of pay provided by the furlough scheme.
United Voices of the World will keep you updated on any further government announcements. However, if you have any queries, concerns, or believe you may need to speak to a caseworker you can do so by filling in our “Reclaim your rights!” form which is available here in both English and Spanish.