Furlough update: Can your employer make you redundant if they can’t pay your wages?
MILLIONS of workers across the UK have been furloughed by their employer - but can you still be made redundant while you’re not working?
Currently, the furlough scheme sees the government pay 80 per cent of the wages of furloughed employees, capped at £2,500 a month.
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But in an announcement today, Chancellor Rishi Sunak confirmed the government will start to wean off this support from August.
Furloughed workers will still receive 80 per cent of their usual wages - the only difference will be who is paying it.
Speaking in the daily coronavirus briefing, Mr Sunak confirmed businesses must start paying National Insurance and pension contributions of furloughed staff from August.
Currently, the government's furlough scheme covers the cost of national insurance and mandatory workplace pension contributions.
Then in September, bosses will have to pay 10 per cent of salaries, plus National Insurance and pension contributions, of furloughed staff, with the government forking out the extra 70 per cent.
In October, businesses will pay 20 per cent of salaries, plus National Insurance and pension contributions, while the government contributes 60 per cent.
In addition, Mr Sunak today confirmed furloughed workers can go back to their job part-time from July 1.
If employees do go back part-time, then their boss must pay their salary for these days.
The furlough scheme will finish at the end of October.
It was originally due to end in July, but the Chancellor extended this deadline earlier this month.
Can I be made redundant if I'm on furlough?
Unfortunately, your employer can still make you redundant if you’ve been furloughed.
Your rights to redundancy pay remain unchanged though, and your boss should still carry out a fair redundancy process.
You will be entitled to statutory redundancy payment if you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years.
You'll get:
- Half a week’s pay for each full year you were under 22.
- One week’s pay for each full year you were 22 or older, but under 41.
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to statutory redundancy pay if you haven't been working for your current employer for less than two years.
There must also be a consultation period if your employer wants to make 20 or more employees redundant within 90 days or each other.
Tom Neil, Acas senior adviser, said: “While an employer can still make redundancies, they must follow a fair process.
“The government’s guidance says that anyone on furlough has the same rights as they did previously.
“That includes rights against unfair dismissal and to redundancy payments, Statutory Sick Pay entitlement, maternity rights and other parental rights.”
Can I appeal redundancy if I'm on furlough?
Being furloughed shouldn't impact your entitled to appeal your redundancy by claiming unfair dismissal.
This must be done within three months of being let go but again, you must have been working for your employer for at least two years.
Speak to a free organisation like if you're considering making an appeal.
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