Coronavirus Job Retention Scheme

Department for Business, Energy and Industrial Strategy written question – answered on 18th September 2020.

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Photo of Alexander Stafford Alexander Stafford Conservative, Rother Valley

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the adequacy of compliance of large companies with redundancy and recruitment regulatory frameworks during the covid-19 outbreak.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

All employers must continue to comply with the law on redundancy.

Any redundancy process should be fair and reasonable, with appropriate equalities considerations. When making redundancies, employers must abide by the law which includes giving a notice period and consulting staff before a final decision is reached. If a company has failed to adequately consult its employees before making them redundant, it may be possible for employees to apply to an Employment Tribunal for a Protective Award.

When recruiting, employers should be fair and objective in their selection of successful candidates and must not discriminate unlawfully, for example on grounds of race, sex or disability.

The Government has also introduced new legislation which commenced on 31 July to ensure that furloughed employees who are subsequently made redundant receive statutory redundancy pay, statutory notice pay, unfair dismissal compensation and pay for short-time working based on the employee’s normal pay, rather than their furlough pay (potentially 80% of their normal wage). The Government has always urged employers to do the right thing and not seek to disadvantage furloughed employees who are facing redundancy.

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