The following Employment practice note provides comprehensive and up to date legal information covering:
For information on the Coronavirus Job Retention Scheme (CJRS), which has been extended to 31 March 2021, see Practice Note: Coronavirus Job Retention Scheme (extended version from 1 November 2020).
For general information on calculating a week’s pay under sections 221–224 of the Employment Rights Act 1996 (ERA 1996), see Practice Note: Calculating a week's pay.
The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020), SI 2020/814, which came into force on 31 July 2020, set out how a week’s pay is to be calculated in the case of an employee who has been furloughed under the CJRS, for the purpose of calculating:
a statutory redundancy payment
statutory compensation for unfair dismissal
a statutory notice payment
statutory pay for time off to look for employment or arrange training
any statutory sum resulting from a failure to provide a written statement of reasons for dismissal, and
any statutory sum resulting from a failure to comply with an order for reinstatement or re-engagement
This is important because these payments are calculated on the basis of a ‘week’s pay’ for the relevant employee and, under with ERA 1996, ss 221–224, the method of calculating a week’s pay differs depending on whether there are normal working hours for the employee when employed under the contract of employment in force on the calculation date.
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