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Notice periods: update to the Coronavirus Job Retention Scheme

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The Government have today (13 November 2020) updated the extended Coronavirus Job retention Scheme (CJRS) in relation to notice pay.

As you may be aware, the CJRS has been extended to 31 March 2021 with a review of the scheme in January 2021.

Under the extended CJRS, employers can still make employees redundant whilst on furlough as well as serving them with their notice. However, an important amendment to the scheme is that for claims starting on or after 1 December 2020, employers can no longer claim for any days on or after 1 December 2020 in which an employee was serving either a contractual or statutory notice period. This also includes employees serving notice of retirement or resignation.

Employees being made redundant will also be entitled to redundancy pay based on their ‘normal’ wage as opposed to the reduced furlough rate. For claim periods during November, employers can continue to claim for furloughed employees who are service their notice period (although grants cannot be used to substitute redundancy payments).

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