Employees on extended furlough scheme entitled to statutory payments based on normal pay

Implementation date: 18 November 2020

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week's Pay) (Amendment) Regulations 2020 (SI 2020/1296) provide that when calculating normal weekly earnings for certain statutory payments, such as redundancy, a week's pay is based on an employee's normal pay rather than furlough pay during the extended period of the furlough scheme. The Coronavirus Job Retention Scheme, under which an employee can be furloughed, was due to end on 31 October 2020, but has been extended until 31 March 2021.