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Furlough and redundancy

Hi all,

Can my employer use a furlough payment from the government as my redundancy pay out? I have a meeting tomorrow and want to have my facts right. 

Thanks 

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    500 Posts Name Dropper
    edited 8 June 2020 at 10:51AM
    The answer is it depends and no one really knows.
    In theory they could keep you on furlough whilst you "work" your notice period (and using up holiday as part of that), the legal situation around that is unclear and would require further guidance and test cases to confirm, but the answer is probably.
    They can not make your "redundancy" pay from furlough funds (eg if you are entitled to a weeks salary for each year of employment and you have been there for four years, so get four weeks pay at the end of your notice period then they can not legally claim that from the government, however I expect some will try by manipulating end of employment dates. 
    Remember that notice periods are taxed normally, redundancy pay is tax free up to £30k.
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