Skip navigation

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."

Related Articles

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Tuesday, August 4 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Tuesday, August 4

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

£11.3m funding for Gloucestershire projects to get building Image

£11.3m funding for Gloucestershire projects to get building

Five infrastructure projects across Gloucestershire will share £11.3million as part of the Government's plan to build a road to recovery from the coronavirus pandemic - creating and protecting more than 1,000 jobs.

Council awards £13m contract to lead way for support Image

Council awards £13m contract to lead way for support

Gloucestershire County Council has awarded a £13million contract to deliver specialist support for vulnerable young people.

Tax changes pile pressure on small brewers Image

Tax changes pile pressure on small brewers

Proposed changes to Small Breweries Relief could make or break small, independent breweries such as Wotton-under-Edge based Severn Brewing.

Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.