Some interesting changes taking place, linked to the furlough scheme, with effect from the start of August.

You probably now know that employers have to start paying employers’ NI and pension contributions, for staff on furlough. This was planned and employers notified some time ago.

But were you aware that for staff being made redundant, it is confirmed employers must calculate any statutory redundancy payment using 100% of their normal wage? This has been clarified, as some employers may have previously paid at the furlough rate instead.

Also, for those serving their notice period whilst on furlough, they must now be paid at 100% of normal wage and not the furlough rate. This is a significant change, as the law had allowed payment at furlough rate, if the contractual notice period was in excess of the statutory amount.

The changes to the law have been introduced without much notice. So, do make sure you check if you are planning any staff changes at this time.

 

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