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How to carry out redundancies when employees have been furloughed

Author: Darren Newman

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

  • Before dismissing employees for redundancy, consider carefully whether or not they can instead be retained under the Coronavirus Job Retention Scheme.
  • Ensure that furloughed staff are consulted as part of any redundancy exercise, using online platforms or other forms of electronic communication when appropriate.
  • Construct a pool for selection based on the future needs of the business and do not penalise employees who have been furloughed.
  • Do not use the fact that an employee has been furloughed as a reason for selecting them for redundancy.
  • Be aware of the potential for discrimination in selecting for redundancy employees whose vulnerability to coronavirus makes it harder for them to return to work.
  • Avoid penalising employees whose difficulties with childcare affect their attendance at work.
  • Consider if a furloughed employee given notice of redundancy should have their pay topped up to normal pay for the duration of the statutory notice period, taking into account the potential complexity of this question.
  • Avoid dismissing a furloughed employee without notice as the Coronavirus Job Retention Scheme will not cover a payment in lieu of notice.
  • Before asking an employee to return to work during the notice period, consider whether or not the terms of their furlough indicated that they would be away from work for a set period.
  • Calculate a redundancy payment on the basis of the employee's normal week's pay rather than their pay while on furlough.