Jennifer Adams considers the tax rules regarding redundancy payments for employed workers who lose their jobs as a result of the Coronavirus.
Despite the support that the government has given businesses via the Coronavirus job retentionscheme (CJRS) many will be looking to make employees redundant, if not immediately then potentially when the furlough scheme ends on 31 October 2020.
Statutory redundancy payments
If so, the usual rule as to what constitutes genuine redundancy and the legal process required still applies. For example, employees made redundant whilst on furlough are still entitled to notice of termination in accordance with their contracts and to a statutory redundancy payment if they have two years’ or more continuous employment, as well as any contractual redundancy entitlement.