Redundancy while on furlough

mummaju75

My employer last week put us on 30 day consultation period for redundancy. None of us have been employed for more than 12 months as we work for a start up.They did advice it would not happen until furlough finishes but have also advised that our notice period will be served during furlough and that they will just top up any amount we are getting to the amount we would receive as notice. Surely this cannot be right? To essentially use government money to pay us part of our 1 month notice period? They have also advised they will be asking us to use our holiday during furlough. Be great to get some solid advice

sharpe106

No they can’t use the government money to pay you your notice period.

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

The relevant point is

Employee rights

Employees still have the same rights at work, including:

• Statutory Sick Pay
• maternity and other parental rights
• rights against unfair dismissal
• redundancy payments

Grants cannot be used to substitute redundancy payments. HMRC will continue to monitor businesses after the scheme has closed.

Andy_L

sharpe106 said:

No they can’t use the government money to pay you your notice period.

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

The relevant point is

Employee rights

Employees still have the same rights at work, including:

• Statutory Sick Pay
• maternity and other parental rights
• rights against unfair dismissal
• redundancy payments

Grants cannot be used to substitute redundancy payments. HMRC will continue to monitor businesses after the scheme has closed.

Is pay for a notice period a redundancy payment though?

gwapoman

Andy_L said:

Is pay for a notice period a redundancy payment though?

I would like to know the answer to that as i am currently on Furloughed and am in consultation for redundancy although i think that notice pay must be your regular salary rate and must NOT  be paid by the government ??

mummaju75

It seems that notice period can be paid using furlough, however no redundancy payment can be paid that way.

ThePeopleDirector

Hi OP, yes the CJRS can be used to supplement your notice pay.  It can't pay any Redundancy Pay or PILON but the employer can claim back 80% of your basic wage.

[Deleted User]

ThePeopleDirector said:

Hi OP, yes the CJRS can be used to supplement your notice pay.  It can't pay any Redundancy Pay or PILON but the employer can claim back 80% of your basic wage.

I'm gonna give acas a buzz later about this as this sounds insane.  Not a dig at your response of course, just can't process how the scheme that was made to prevent this exact scenario could be exploited like this.

JReacher1

Practically whether the government pays 80% of your notice period salary or not it doesn’t really make any difference to you as you’ll still get the same money. 

I think the one problem with furlough is that some companies will realise they can operate their business with a lot less people than before. As a result it will mean that there will be large redundancies across the UK. This was what furlough was meant to prevent!

JoeHouston

I am currently on furlough however my employer has announced redundancies at the end of the month.
If I am made redundant is there a way for me to remain on furlough and continue benefiting from the government grant? 
Please help?!
Thanks

Andy_L

JoeHouston said:

I am currently on furlough however my employer has announced redundancies at the end of the month.
If I am made redundant is there a way for me to remain on furlough and continue benefiting from the government grant? 
Please help?!
Thanks

No. 

sharpe106

JoeHouston said:

I am currently on furlough however my employer has announced redundancies at the end of the month.
If I am made redundant is there a way for me to remain on furlough and continue benefiting from the government grant? 
Please help?!
Thanks

Except for asking them to delay the redudancies no. Although as it will still cost them they will probably decide not too.