If an employee resigns during furlough, do they get full pay for their notice period? Employment Law

While an employee is furloughed, a percentage of their wage (up to £2,500 per month) is paid through a grant from the Coronavirus Job Retention Scheme.

But what happens if an employee resigns during furlough? Specifically, what notice pay are they entitled to?

What notice pay is a furloughed employee entitled to?

If an employee is furloughed and has agreed to accept 80% of their salary, their notice entitlement depends on whether they are entitled to statutory or contractual notice.

If an employee is contractually entitled to at least one week more notice than the statutory minimum then they should receive 80% pay up to £2,500 per month for the full contractual notice period.

If an employee is only entitled to Statutory Minimum Notice (or no more than a week above statutory minimum) they are entitled to be paid their normal pay for the statutory minimum notice period, which will be full pay.

There is a a myriad of complexities to the above, so it is important to seek professional support should you feel unsure about notice periods and pay.

Help and support from Beswicks Legal

The Coronavirus Job Retention scheme was created very quickly in response to the rapidly evolving situation. Therefore, both employers and employees may need clarification to understand their rights in law when it comes to notice periods and pay.

If that is the case for you or your organisation, our Employment Law Team is on hand to help you understand the current situation and how it applies to you. Email enquiry@beswicks.com or phone 01782 205000 to arrange a consultation.