UK furloughed workers to get full redundancy pay under law change

Furloughed workers who lose their jobs during the coronavirus crisis will be eligible for redundancy pay based on their normal wages under new laws that will take effect on Friday.

Some firms had taken advantage of the current crisis to pay redundancies at the lower rate, which stands at 80% of full pay, the government said.

"It is important that employees receive the payments they are rightly entitled to," said Business Secretary Alok Sharma.

“New laws will ensure furloughed employees are not short-changed and are paid their full redundancy pay entitlement – providing some reassurance in an undeniably testing time.”

Ministers said the changes will also apply to statutory notice pay and other entitlements.

TUC general secretary Frances O’Grady said: “People should get full redundancy pay, but the government must be focused on stopping job losses in the first place.

“We urgently need targeted support for hard-hit industries, and extension of the furlough scheme beyond October for those who need it.”

“Without this, we risk an avalanche of redundancies in the autumn and undermining the economic recovery.”