Furloughed employees entitled to full statutory payments based on their normal pay


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The Employment Rights Act 1996 (Coronavirus, Calculation of a Week's Pay) Regulations 2020 came into force on 31 July and modify the calculation of a week's pay for the purposes of statutory redundancy pay and other statutory payments.

In essence for those with "normal working hours" any reduction in the amount payable as a result of the employee being furloughed must be disregarded.  For those without normal working hours, a week's pay is calculated according to their "reference salary" for claiming furlough pay under the Coronavirus Job Retention Scheme (CJRS) but without the cap imposed by the scheme.

The Regulations cover statutory redundancy pay, remuneration for time off to look for employment or arrange training, notice pay, compensation for failure to provide a written statement of reasons for dismissal, compensation for failure to comply with an order for reinstatement or re-engagement, compensation for unfair dismissal, and the assessment of whether an employee is to be taken to be kept on "short-time" for a week in accordance with section 147(2) Employment Rights Act 1996 (where the employee's remuneration for the week is less than half a week's pay).

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