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

Implementation date: 31 March 2021

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week's Pay) (Amendment) Regulations 2021(SI 2021/177) 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 period of furlough. The Coronavirus Job Retention Scheme, under which an employee can be furloughed, was due to end on 31 March 2021, but has been extended until 30 April 2021.