Q&As

Can a settlement agreement provide for an employee to be placed on furlough under the Coronavirus Job Retention Scheme (CJRS) for three months, during which time their salary will be funded by a CJRS grant, and to be paid a statutory redundancy payment at the end of that period?

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Published on LexisPSL on 10/07/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Can a settlement agreement provide for an employee to be placed on furlough under the Coronavirus Job Retention Scheme (CJRS) for three months, during which time their salary will be funded by a CJRS grant, and to be paid a statutory redundancy payment at the end of that period?

Can a settlement agreement provide for an employee to be placed on furlough under the Coronavirus Job Retention Scheme (CJRS) for three months, during which time their salary will be funded by a CJRS grant, and to be paid a statutory redundancy payment at the end of that period?

For information generally on the situation where an employer enters into a settlement agreement before termination that provides for the employee to be placed on garden leave during their notice period, see Practice Note: Settlement agreements in employment—practical and tax issues—Garden leave and reaffirmation (two-stage settlement).

An employee whose employment is terminated by reason of redundancy will be entitled to receive their contractual notice entitlement (or their statutory entitlement, if longer) and a statutory redundancy payment calculated on the basis of their age, length of service and gross weekly pay (capped at the rate of £538 per week from 6 April 2020). See Practice Notes:

  1. Entitlement to statutory redundancy payment

  2. Contractual notice

  3. Statutory minimum notice

For information on the Coronavirus Job Retention Scheme (CJRS) generally, see Practice Notes:

  1. Coronavirus Job Retention Scheme (original version to 30 June 2020)

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