PARLIAMENTARY WRITTEN QUESTION
Redundancy Pay (17 July 2020)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department's specific guidance is on using previous wages to calculate redundancy and notice pay; and whether that calculation should include furlough pay.

Asked by:
Jonathan Reynolds (Labour)

The provisions relating to calculation of redundancy and notice pay under the Employment Rights Act continue to apply when an individual is on the Coronavirus Job Retention Scheme. Employees who are dismissed due to redundancy and who satisfy certain qualifying conditions are statutorily entitled to a lump sum from their employer, based on their age, length of service and contractual weekly earnings, subject to a statutory upper limit, payable at, or soon after, the dismissal date.

During this difficult period, we urge employers to exercise discretion and not use the Job Retention Scheme to make someone redundant on less favourable terms than they would otherwise have received.

Answered by:
Paul Scully (Conservative)
22 July 2020