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Furloughed employees to receive full redundancy payments

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The Department for Business, Energy & Industrial Strategy has announced this morning that it is bringing in a new law to ensure all furloughed employees receive redundancy payments at 100% of their normal pay, rather than a reduced furlough rate.

The law is said to come into force today, although the SI has not (to my knowledge) yet been published or made. Doubtless it will be published in the next few hours.

At the moment, and massively oversimplifying, employees on regular fixed salaries get redundancy payments based on their normal wage as if they were working full hours (so 100% of normal pay), whereas employees with fluctuating hours/earnings get a payment based on the average of their last 12 weeks’ pay - which, if they’ve been furloughed, is likely to be less than 100%.

You can see a series of free resources about making redundancies at

[Thanks to Andrew O’Neill for tipping me off about this]