Updated ACAS Redundancy Advice
ACAS has recently updated its redundancy advice for employers after experiencing a surge of calls from employees seeking advice on the redundancy process.
The updated guidance is aimed at employers who are considering making employees redundant but urges them first to consider any alternatives to redundancies (such as flexible working or compressed hours). ACAS has made it clear that redundancy should always be a last resort.
The updated guidance provides employers with advice on how to conduct the redundancy process as a whole and deals with issues such as the selection process and how to calculate statutory redundancy payments.
You can read the guidance here.
The guidance also addresses legislation that has recently been introduced to clarify how employers should calculate redundancy and notice payments for employees being made redundant whilst on furlough.
The new legislation which came into force on 31 July means that certain employees who have been made redundant whilst on furlough are entitled to a redundancy payment based on their usual, pre-furlough salary rather than the reduced sum they may have received whilst furloughed.
It clarifies 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.
This new guidance and legislation finally clarifies one of the biggest unanswered questions that employers who have had to make furloughed staff redundant have been asking in recent months.