Redundancy affected by furlough

Dear MSE
I wonder if you can advise me. My sister in law is being made redundant after being on furlough. The redundancy payment she is getting will be less than she was expecting. The explanation given by her company is that her redundancy payment is calculated on her last 12 weeks pay and they are using a loophole in the legislation that allows for that pay to be based on her reduced furlough pay. This has reduced her redundancy payment by about £1,000. They have advised her that they are aware that this loophole is being challenged,  but are none the less going to use it anyway. Any suggestions for a course of action would be gratefully received.

Comments

  • sharpe106
    sharpe106 Posts: 3,559
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    Do you mean her notice pay or redundancy pay? As notice pay it is unclear if furlough pay or normal pay but redundancy pay the government has been clear on it is normal pay. 
  • ssdkck
    ssdkck Posts: 121
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    Watching the martin Lewis show regarding redundancy, the reprensitive from from acas said that if your given notice while on furlough it should still be on full pay, 80% furlough and 20% employer
  • sharpe106
    sharpe106 Posts: 3,559
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    edited 26 June 2020 at 2:17PM

    Should not that has to be. It is what they want but nothing has been written to say what would happen if it went any further. Would certainly be trying for 100%.






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