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Gloucestershire Business News

Law ensures full redundancy payment for furloughed workers

Unions have welcomed the announcement that furloughed workers who lose their jobs must receive redundancy based on their full wages - but called on the Government to concentrate on limiting job losses.

New laws introduced yesterday ensure employees who have been receiving 80 per cent of their wages under the Coronavirus Job Retention Scheme receive statutory redundancy pay based on their normal wages.

But TUC general secretary said the Government's focus should be on saving jobs.

She said: "People should get full redundancy pay, but the Government must be focused on stopping job losses in the first place.

"We urgently need targeted support for hard-hit industries, and extension of the furlough scheme beyond October for those who need it.

"Without this, we risk an avalanche of redundancies in the autumn and undermining the economic recovery."

Business Secretary Alok Sharma said a minority of businesses had paid reduced redundancies.

He said: "We urge employers to do everything they can to avoid making redundancies, but where this is unavoidable it is important that employees received the payments they are rightly entitled to.

"New laws will ensure furloughed employees are not short-changed and are paid their full redundancy pay entitlement - providing some reassurance in an undeniably testing time."

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