Redundancy pay to be protected for furloughed workers
It varies from at least one week's notice up to 12 weeks' notice, depending on how long they have worked for their employer. During the notice period, employees must be paid.
The legislation will ensure that notice pay is based on normal wages rather than the lower wages they may have been paid under the Coronavirus Job Retention Scheme.There are reports that closing the furlough scheme could lead to a 10% unemployment rate Other changes coming into force will ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the furlough scheme.
"We urge employers to do everything they can to avoid making redundancies, but where this is unavoidable it is important that employees receive the payments they are rightly entitled to," said Mr Sharma.An estimated 150,000 people have so far been made redundant during the coronavirus crisis, but experts expect the figure to climb much higher, especially after the furlough scheme ends in October.
Earlier this week the National Institute of Economic and Social Research think tank warned that the ending of the furlough scheme could lead to 1.2 million Britons being unemployed by Christmas,Under the furlough scheme workers have 80% of their salaries paid for by the government - up to £2,500 a month.
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