BUSINESSES across the UK are being forced to make staff redundant due to the coronavirus crisis in order to save cash. But what are your rights if you’re on the furlough scheme or pregnant? We explain all you need to know. Can you be made redundant while on furlough? The coronavirus job retention scheme is […]
BUSINESSES across the UK are being forced to make staff redundant due to the coronavirus crisis in order to save cash.
But what are your rights if you’re on the furlough scheme or pregnant? We explain all you need to know.
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The coronavirus job retention scheme is designed to keep workers employed by helping businesses pay staff wages.
At present, the furlough scheme sees the government pay 80 per cent of the wages, capped at £2,500 a month, of employees who are unable to work.
But from August, employers will have to start stumping up some of the costs of furloughed workers, starting with paying National Insurance and pension contributions.
Then from September, businesses who continue to furlough employees will have to pay 10 per cent of their wages, and 20 per cent in October.
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The government will pay 70 per cent of wages in September and 60 per cent in October.
Unfortunately, if your employer is unable to pick up some of the tab, it can make you redundant instead or it may choose to cut your working hours.
If your employer is cutting more than 100 jobs and they don’t want to incur some of the cost of furloughed staff from August, they’d start redundancy consultation processes in mid-June.
But if you’re made redundant, this doesn’t affect your redundancy rights if you’re let go from your job amid the coronavirus crisis.
These include getting redundancy pay and a paid notice period, which we explain below.
Sadly, you can also be made redundant even if you’re pregnant or on maternity leave.
Although, your employer can’t make you redundant just because you’re pregnant or on maternity leave, said Matthew Bradbury, employment expert at Citizens Advice.
If you are this counts as “automatic unfair dismissal” and discrimination, he added.
This could be if your boss has no genuine reason to make you redundant, or if there’s a real reason and they pick you because of your pregnancy or maternity leave.
Pregnant staff on fixed-term contracts have similar rights to permanent employees, said the Advisory, Conciliation and Arbitration Service (ACAS).
If your employer doesn’t renew a fixed-term contract because of pregnancy or maternity leave, this would also be unlawful discrimination and automatic unfair dismissal.
Parents on maternity leave or shared parental leave also have additional protection to help them get by while raising young kids.
For example, if you are on maternity or parental leave, and there is a genuine reason to make your role redundant, your employer must offer you suitable alternative work if they have it.
They should also give this to you as a priority over other employees.
No matter whether you’re pregnant or on furlough and you’ve been made redundant, you will receive a statutory redundancy payment, as long as you’ve been working somewhere for at least two years.
How much you’re entitled to depends on your age and length of service, although this is capped at 20 years. You’ll get:
Sadly, you won’t be entitled to a payout if you’ve been working for your employer for fewer than two years.
Your employer may offer you an additional contractual redundancy payment if they run their own scheme, but they don’t have to.
As well as statutory redundancy pay, you’re also entitled to a paid statutory notice period if you’ve worked for your employer for at least a month.
If you’ve worked there for more than a month but less than two years, you have to be given a week’s notice.
For two years or more, it’s a week for each full year you have worked, up to a maximum of 12 weeks.
You may also be entitled to a longer notice period as part of your contract.
Your notice period only starts when your employer says you’ll be made redundant and gives you a finishing date – not when your employer says you’re at risk of redundancy, said Citizens Advice.
If your employer is making 20 or more people redundant, you’re part of a “collective redundancy”, which means your employer has to hold a group consultation.
This must start at least 30 days before anyone’s job ends.
If 100 or more people are being made redundant, group meetings must start at least 45 days before anyone’s job ends.
This applies even during the coronavirus lockdown, although meetings may be held remotely and through video calls.
