Redundancy calculated on furlough pay? 19 June 2020 at 10:01AM in Redundancy & redundancy planning 11 replies 591 views

AngelaDBrown

I am on furlough and under consultation for redundancy.  In the latest communication they have stated that SRP will be calculated on the 80% furlough wage and not my full wage - is this allowed?

I am also concerned that the company have changed ownership during my employment - will my total years service be used in the calculation or just since the new owner took over?

thank you

happy_2008

According to this it should be 100%:

https://www.cipd.co.uk/knowledge/fundamentals/emp-law/redundancy/coronavirus-guide

sharpe106

It is total years of service for the company. 

AngelaDBrown

Thank you for the replies.
The  information on the CIPD site says it is hoped but not certain does anybody know of the legalities involved in this?

sharpe106

Basically no, the government has not said anything. You can make an argument for both cases, so until either the government state what it is or a judge does, all you can really do is try and get it at 100% and then if turns out wrong you can claim the difference in the future. If you feel strongly enough you could seek professional assistance or contact ACAS but unless you are a big earner for the effort probably not worth it. 

sharpe106

As somebody pointed out the other day the government insolvency service is using 100% but that still does not mean on that a company has to, just a nice indicator. 
https://www.gov.uk/government/publications/furlough-and-redundancy/furlough-and-redundancy#rate-of-pay

AngelaDBrown

Thank for the replies, they will help in my attempts to get 100% 

sharpe106

Hopefully you can convince them good luck, be interesting to know how it went.

jaybeetoo

Listen to the BBC Money Box programmes on Furlough as it’s been covered there https://www.bbc.co.uk/programmes/b006qjnv/episodes/downloads

AngelaDBrown

Looks like the company are going to calculate on normal wages now for redundancy and notice pay after pressure from employees.  Will let you know if anything changes.

thanks for your input 🙂

vickyfox73

Sorry for post crashing here but you sound like knowledgeable people......
I am currently furloughed pending redundancy in August. I know I am allowed to take other employment whilst furloughed but if I did find another job before the redundancy date, would I lose my payout? * note * I would still be available to work for my existing employer with their 48 hour notice policy, (although I 100% know this won’t be happening)  so in no way shape or form would I be resigning. Thanks