Help Centre for Payroll bureaux

I have to make some of my employees redundant while they’re on furlough. What salary do I use to calculate their redundancy pay?

Employees who are currently being paid under the Coronavirus Job Retention Scheme (CJRS) should receive statutory redundancy pay based on their normal wages, rather than the reduced furlough rate. The government introduced this legislation on 31 July 2020.

The regulations aim to ensure all furloughed employees who are being made redundant receive their full entitlement. They aren’t intended to affect any enhanced redundancy terms in an employee’s individual employment contract.

They also cover other employment rights that rely on average weekly pay, including those relating to notice pay, unfair dismissal, and short-time working.

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