Redundancies Soar But What Are The Payment Rules?

Redundancies Soar But What Are The Payment Rules?

As an employer of domestic/household staff you may, in these difficult times, face upto the option of consolidating staff roles and redundancies


If so, you are not alone as Acas, the concilliation service, has seen a jump of 160% redundancy-related calls in recent months compared with the same period in 2019.


If you are in this situation or considering the option it is important that you know the rules and to perhaps consider other options.


Acas are recommending alternative options before deciding on redundancies such as limiting overtime. Another alternative, they say, is to consider transferring employees into other suitable roles.


This is an important consideration as if another role is suitable and it is not offered, this could be judged as unfair dismissal, say Acas.


However, if staff redundancies have to be made, legislation which came into force from 31st July 2020 means that qualifying employees are now entitled to redundancy pay based on their ‘normal’ salary rather than the rate they received on furlough.


The legislation stipulates that employees with more than two years’ continuous service should receive redundancy pay and statutory notice pay based on their contracted rate, and that basic awards for unfair dismissal cases must also be based on full pay rather than furlough pay.


The Graham Agency, keeping you informed.