Notice period while furloughed

Gettingtherequickly

Hi

Unfortunately, we are making an employee redundant due to the current circumstances.  Currently furloughed (80% pay) and in notice period.

In the process of calculating final pay, should this include the 20% not being paid while furloughed, this will obviously be liable for tax? Holiday pay is part of the notice period, so calculated accordingly.

TIA

JReacher1

Not sure what the legal position is but as you get the 80% back from the government then really you should pay the additional 20% to give the employee their full notice pay. It won’t cost you much and would be the decent thing to do. 

Gettingtherequickly

JReacher1 said:

Not sure what the legal position is but as you get the 80% back from the government then really you should pay the additional 20% to give the employee their full notice pay. It won’t cost you much and would be the decent thing to do. 

That was my take on things, but I am not the boss, will use my powers!

thebrexitunicorn

If the 80% pay was a temporary variation to the contract then notice should be paid at full rate of pay. 

getmore4less

if the notice is statutory  then full pay. if contractual and a week or more longer than statutory that does not apply.

https://www.legislation.gov.uk/ukpga/1996/18/section/87

Juliette100

Statutory Notice period is at full pay.  Outside that furlough amounts apply unless the business want to make this % up.