PJH Law has been helping employers through this difficult period. Here are some key terms that explain the different options.
Short time is less than half a week’s work and pay in any one week for the purposes of redundancy pay under section 147, but any one workless day in any week for the purposes of guarantee pay under section 28 .
Lay off is no work and no remuneration in any one week under section 147.
Furlough is no work for a minimum of 3 weeks.
Guarantee Pay of £30 per day of lay off or short time for the first 5 days of lay off or short time in a 3 month period.
Furlough Pay is 80% of pay, capped at £2500 pcm for any period of furlough, subject to a minimum of 3 weeks.
Statutory Redundancy Pay:
May be payable if the employee can jump through section 148 of ERA and provided the employee:
Either has been laid off or on short time as defined for four consecutive weeks.
Or has been laid off or on short time for a series of 6 weeks in a 13 week period in which not more than 3 of the weeks were consecutive.
Section 148 may not apply to furloughed employees as they don’t meet the definition of being laid off or on short time as they are being paid 80% as capped in any week without work.
We trust you find the above helpful.