Does placing employees on furlough prevent the employer from making them redundant?

Placing an employee on furlough does not prevent the employer from making them redundant. However, for claim periods from 1 December 2020, an employer cannot claim under the Coronavirus Job Retention Scheme during an employee's notice period (whether statutory or contractual notice), including where they have been given notice of redundancy.

The HM Revenue and Customs (HMRC) guidance for employers confirms that employers should follow the normal rules on notice and consultation if making furloughed employees redundant.