AQW 4386/17-22

Mr Stewart Dickson
Alliance Party
East Antrim

Tabled Date: 01/06/2020
Answered On Date: 11/06/2020
Priority Written: Yes

Question:
To ask the Minister for the Economy whether a furloughed employee, subsequently made redundant, would have redundancy pay calculated based on furloughed pay or regular contractual pay, in Northern Ireland.

Answer:

Responsibility for the UK-wide Job Retention Scheme falls to Her Majesty’s Revenue and Customs. However, I understand there is nothing in the scheme that prevents employers from taking into consideration time on furlough when calculating redundancy pay.

The rules on calculating redundancy pay are complex and depend on age, length of service, working pattern and contractual arrangements. Theoretically, this complexity could mean that there may be some situations where the employer could use furlough pay as part of this calculation.

However, in these difficult times, I am firmly of the view that employers should assess redundancy pay using employees’ weekly pay prior to furlough in line with any contractual obligations at that time. I would not expect an employer to take advantage of the Government’s Job Retention Scheme, which has brought benefit to employers and employees alike, to make someone redundant on less favourable terms than they would otherwise have received. It should also be borne in mind that any redundancy payment may be subject to determination by an Industrial Tribunal.