I have read a few recent questions and answers regarding the redundancy of employees while on furlough, but I am concerned that there is a bit of guesswork going on here.
I hold to the maxim that when stuck, it is best to refer directly to the legislation rather than other's interpretations. However, in the case of redundancy of employees while on furlough I cannot find any relevant legislation or regulations. All I have to go on is:
The consensus online seems to be that: i) pay during the notice period is claimable, ii) pay in lieu of notice is not claimable, iii) redundancy pay is to be based on the average weekly earnings prior to furlough, not the reduced average weekly earnings while on furlough.
It is, in particular point iii) that I am struggling with. Where do the regulations say this? As far as I can tell, the long-standing redundancy rules require the redundancy pay to be based on the average last 12 weeks earnings. In what way are those last 12 weeks earnings not in fact at the reduced furlough amount? My interpretation is that the employees contractual pay reduced by 20% when they entered furlough (in exchange for not having to provide labour), Their gross pay for Apr/May/Jun is the reduced amount.
I am really trying to get this right as there is a lot of money at stake for my client (and their employees!), so I would be really grateful if someone could point me in the direction of legislation or regulations that clarify this issue.