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The Employment Rights Act 1996 (Coronavirus, Calculation of a Weeks Pay) Regulations 2020

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The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 have been published today and take effect tomorrow, 31 July 2020.

The Regulations set out how a week’s pay is to be calculated for a furloughed employee for:

  1. statutory remuneration for time off to look for employment or arrange training;
  2. statutory notice payment;
  3. statutory sum resulting from a failure to provide a written statement of reasons for dismissal;
  4. statutory sum resulting from a failure to comply with an order for reinstatement or re-engagement;
  5. statutory compensation for unfair dismissal; and
  6. statutory redundancy payment,

It goes without saying that the Regulations are not straightforward!  The calculations change depending on whether normal working hours and remuneration vary with the amount of work done, whether normal working hours and remuneration vary according to time of work, and what to do if the furloughed employee has no normal working hours or does not have sufficient length of service to fulfil the requirements of one of the other calculations.

And so the CJRS keeps on giving…

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