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.
• 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.