Redundancy and ‘furlough’

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If you are an employer and making a redundancy you must use the employee’s full normal pay in relation to their notice pay when working out what they are owed.

You cannot use Job Retention Scheme (CJRS) pay when making this calculation.

“This is causing a lot of confusion,” said Lisa McLeod, payroll manager at Ellis & Co.

“When calculating notice, an employee’s normal pay must be used and not based on the amount they receive through the CJRS scheme,  for the redundancy element you will need to pay in accordance with your contract or Statutory Redundancy whichever is applicable.

“For example if an employee is paid £400 a week and has been receiving CJRS payments at 80% of their wage you cannot use that amount but the £400 they would usually be paid.”

If you need any further information on this or any other payroll matter please contact Lisa on 01244 343504.