Government clarifies redundancy payments
Statutory redundancy pay, salary in lieu of notice and notice pay must all be paid at pre-furlough pay levels, not the 80% rate. The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 apply to employees whose contract is drawn up under the Employment Rights Act 1996 . Employees in Northern Ireland may not be protected as their contract may be issued under the equivalent legislation - the Employment Rights (Northern Ireland) Order 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations (Northern Ireland) 2020 which was effective on 14 August 2020. The new legislation also applies to compensation that could be awarded by a tribunal if there has been a breach of employment rights. Employers can claim under the Coronavirus Job Retention Scheme for employees who are serving their notice up to the 80% level but must top this up at their own cost to 100%.
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