Full Time or Part Time Redundancy Calculation

Grumpy_chap

My wife had another redundancy consultation call today and they seem to have said that she will stay on furlough until end of June and after that the amount of furlough will be 1 week per year's service and then that will be that.

It sounds like there may be some crossed wires (confusing redundancy pay and furlough), and it may get naturally corrected in the fullness of time, but it does give a couple of questions

1. Is it possible to be on furlough while also serving notice period or PILON?
2. We understand the redundancy pay (1 week per year's service, or 1.5 week per year's service age related) is normally exempt from tax, so if it was put through as furlough, might be good for the company but my wife would loose out big time?

sharpe106

Sorry to hear that. The government has made it clear that the furlough scheme can’t be used for redundancy payments. But they have not said anything about notice period. However I think they probably can, as you are still classed as being an employee on notice period. It is just unclear if they need to pay it at 100% or if they can carry on paying it at 80%, you can probably make a good argument for each case. So until the government either makes an announcement or it is tested in court nobody really knows.  

Grumpy_chap

Thanks @sharpe106 - I just think there is a mix-up along the way that confused redundancy and furlough.  I am sure they will sort that out when the details are finalised and they will probably prepare a settlement agreement which will be clear.  My wife is quite lucky really, given the circumstances, as her company are being fair and currently topping up the 80% to 100%.  We still hope they might extend the furlough period when the full detail of the latest government announcement gets through to them.