Further guidance has been given regarding notice pay and whether or not furlough payments can be used to cover notice pay.
The guidance expressly confirms that employees can be made redundant whilst they are on furlough and employers can continue to claim for the employees whilst they are serving a statutory or contractual notice period. Grants however cannot be used to substitute redundancy payments and redundancy payments have to be calculated based on the employee’s full rate of pay and not the furlough rate of pay.
However, for claim periods starting after 01.12.2020, employers cannot claim for any days on or after 01.12.2020 during which the employee is serving a contractual or statutory notice period.
This rule applies whether the notice period has arisen because of redundancy or where the employer has given the employee notice, or where the employee has given notice such as retirement or resignation.
