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.