Case Study: Redundancy Following Furlough Leave Due To Coronavirus

Have you been given a settlement agreement because of redundancy following a period of furlough leave? Here’s a case study of a recent client we advised with a settlement agreement within 24 hours of instructions.

This client was placed on Furlough Leave quite soon after it was announced by the Government. He had signed a furlough leave agreement in which he agreed to accept 80% of his usual wages while on furlough.

During furlough leave, his employer had (unfortunately) reached the conclusion that his role would be redundant in any event. That is a shame, as it is not what the Coronavirus Job Retention Scheme is intended to do, but nonetheless an inevitable consequence of an absolute lack of work.

Our settlement agreement solicitors advised this client on his agreement quickly.

We ensured that:

• He got full pay for his contractual notice period and NOT his reduced pay for the furlough period
• That he was paid for all untaken but accrued holiday
• That he received the statutory redundancy pay calculated on his usual pay NOT his furlough pay
• That he received additional compensation

While there is some debate in legal circles at present on what notice pay should or shouldn’t be while on furlough, but our view is that furlough is a temporary measure and it would be unfair for a company to benefit from that temporary reduction in pay and then going on to make redundancies.

So, if you are currently on furlough leave and have been given a settlement agreement, then please give our settlement agreement solicitors a call today for a no-obligation discussion without cost – your employer usually pays the bill.