Protection of termination payments for furloughed employees extended

Implementation date: 30 April 2021

Pursuant to the extension of the Coronavirus Job Retention Scheme until 30 September 2021, the Employment Rights Act 1996 (Coronavirus, Calculation of a Week's Pay) (Amendment) (No.2) Regulations 2021 (SI 2021/487) extend the application of the Employment Rights Act 1996 (Coronavirus, Calculation of a Week's Pay) Regulations 2020 (SI 2020/814) to 30 September 2021. The 2020 Regulations ensure that various statutory entitlements based on a week's pay that arise on termination of employment are not reduced as a result of an employee being furloughed.

The Employment Rights (Northern Ireland) Order 1996 (Coronavirus, Calculation of a Week's Pay) (Amendment) (No.2) Regulations (Northern Ireland) 2021 (SR 2021/112) provide for the same impact on rules in Northern Ireland.