Many businesses are having to make some big decisions about their employees right now. If making redundancies is something you are considering here are a few things you need to be aware of.
When making redundancies you need to do so in accordance with the normal rules.
- giving a notice period
- consulting staff before a final decision is reached
- Confirming everything in writing
Staff are entitled to be paid their full salary during their notice period
This is even if they have only been receiving the relevant percentage of furlough pay during furlough.
For claim periods relating to November
You can continue to claim for a furloughed employee who is serving a statutory notice period. However, grants cannot be used to substitute redundancy payments.
For claim periods starting on or after 1 December 2020
You cannot claim for any days on or after 1 December 2020 during which the furloughed employee was serving a contractual or statutory notice period for the employer. This includes people serving notice of retirement or resignation. If an employee subsequently starts a contractual or statutory notice period on a day covered by a previously submitted claim, you will need to make an adjustment.
If you make an employee redundant, you should base statutory redundancy on their normal wage rather than the furlough wage. Any outstanding holidays should also be paid at the full wage amount.
Apart from being an unpleasant process to manage, it can also be a legal minefield. As such, it is important to follow the correct procedures. Remember, we are not solicitors, the information above is general advice. It is best to seek legal advice from a suitable law firm for your specific circumstances.
As always, if there is anything you would like to discuss further just give us a call or drop us an e-mail. We’d love to grab a coffee and chat over zoom!