Uk Furlough Scheme And Redundancy, Worst Agency Redundancies To Hit When Govt Furlough Scheme Ends

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If your employer did not top up your october pay to match your previous furlough pay you can apply for the additional 20 when you make your claim for redundancy payments. Employees and workers who have not been on furlough. An estimated 150000 people have so far been made redundant since the coronavirus pandemic hit the uk earlier this year but with the furlough scheme due to end in october the national institute of economic and social research think tank predicts that around 12 million could be unemployed by christmas.
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Despite government support with the furlough scheme job retention bonus and other measures for businesses it expected that at least a quarter of uk businesses will be making some redundancies.

Government cheeseburger. The unprecedented furlough scheme has seen more than a million companies secure aid to support up to 95 million workers pay since the uks lockdown was implemented. Importantly the usual processes and laws around redundancy have not changed in fact the furlough scheme places additional challenges on businesses. It has now been extended until december 2020.

The furlough scheme has been extended until the end of october and the government will continue to pay 80 of workers wages until july 31. Government brings in law to ensure furloughed employees receive statutory redundancy pay based on their normal wages rather than a reduced furlough rate. The following changes also apply.

The coronavirus job retention scheme was intended to provide an alternative to redundancies where a business had been severely affected by the coronavirus pandemic. Under the coronavirus jobs retention scheme to give furlough its official title employees placed on leave receive 80 of their pay up to a maximum of 2500 a month. The amount employers can claim will increase to 80 of wages capped at 2500.

Extension of the furlough scheme. The government job retention scheme is designed to reduce the need for redundancy therefore tribunals are likely to take a dim view on any employer that leaps to redundancy whilst the furlough scheme is still operational where there was a mechanism to delay the need to end employment and protect income for workers. The furlough scheme coronavirus job retention scheme was due to end on 31 october 2020.

So its likely talks of redundancy will start now. From august 2020 employers are expected to bear some of the cost of furloughed employees and the scheme will close at the end of october 2020.

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Uk Furlough Scheme And Redundancy, Worst Agency Redundancies To Hit When Govt Furlough Scheme Ends

Despite government support with the furlough scheme job retention bonus and other measures for businesses it expected that at least a quarter of uk businesses will be making some redundancies.

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