John Baron MP highlights new law ensuring full redundancy payments

MP says employees will not be short-changed

The Government is introducing a new law to ensure that furloughed employees receive statutory redundancy pay based on their normal pay, rather than a reduced furlough rate. This will mean that those furloughed under the Coronavirus Jobs Retention Scheme will not be short-changed if they are made redundant, providing some reassurance at a difficult time.

John said,

“One heartening aspect of the coronavirus pandemic is that many businesses have gone the extra mile to support their employees during these tough times, including some which have topped up the missing 20% of the wages of their furloughed staff. However, some businesses have been paying those being made redundant based on their furlough pay rather than their regular wages. This is disappointing, and whilst I urge employers to do everything they can not to make their employees redundant, I am pleased the Government is taking steps to ensure employees are not short-changed.”