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How to carry out redundancies when employees have been furloughed

Author: Darren Newman


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.
  • Be aware that an employee given notice of redundancy who is not provided with work may be entitled to their normal pay for the duration of the statutory notice period.
  • If dismissing a furloughed employee without notice, understand how to calculate a payment in lieu of notice.
  • Calculate a redundancy payment on the basis of the employee's normal week's pay rather than their pay while on furlough.