Real Employment Law Advice

Filing cabinet of redundancy documents

FAQ’s about furlough & redundancy

This is the seventh and final episode of a mini series on redundancy in which I will focus on all aspects of redundancy and how to ensure you get things right.

In this episode I will cover answers to the following questions:

  • I have heard some people say it is unfair to make redundancies when the furlough scheme is still available, is this true?
  • Can I make redundancies now or do I have to wait until the end of the furlough scheme?
  • Do I have to keep employees on furlough if there is no work for them in the future?
  • I have heard that there is a new way to work out redundancy pay is this correct?
  • How do I calculate redundancy pay for someone who is furloughed?
  • How much do I have to pay for notice?
  • Do I pay 80% or 100% for notice pay?
  • Can I claim furlough pay back from the government if it is for the notice period?
  • I have heard that you cannot claim under the furlough scheme if you are making someone redundant?
  • Can I claim the statutory redundancy payment under the furlough scheme?
  • Can I select someone for redundancy who is furloughed?
  • Can I change employee contract terms from fixed hours to zero hours to avoid redundancy?
  • I have an employee who is furloughed and cannot return to work yet because of childcare, can I make them redundant?
  • I plan to close the business altogether do I need to go through a redundancy consultation?
  • If the furlough scheme does end in October can we still furlough staff and pay less?

Action Points

  1. Ensure that you seek advice about any issues or changes, before you take action, particularly relating to furlough as it is a developing area of law.
  2. Get all of the documents you need to complete the redundancy process here: Redundancy DIY Toolkit

Helpful Links

Employment Rights Act 1996 

 Polkey Case

HR1 Form 

Guide to Redundancy


Redundancy Documents For Employers - DIY Legal Documents DIY Redundancy Documents

Available to purchase now, all of the letters and documents you need, including guidance, to complete a redundancy process. It is available to download directly from this website for £100 plus VAT (£120).

Within this toolkit you will find everything that you need to undertake a redundancy process including:

  • Redundancy plan – step by step guide
  • Timetable to use – collective consultation and non-collective consultation versions
  • Letter warning employees of redundancy situation
  • First letter to employee representatives re proposed redundancies
  • Letter to employees requesting volunteers for redundancy
  • Letter to employee representatives with details of collective consultation process
  • Ballot paper for election of employee representatives
  • Nomination form for employee representatives
  • Notice to employees with outcome of the elections
  • Notice to employees re Employee representative elections
  • Letter follow up on individual meeting
  • Letter offer of alternative employment
  • Letter to individual employees – provisional selection for redundancy
  • Letter to individual employees confirming dismissal for redundancy
  • Example Redundancy selection criteria

Click here to go to the DIY shop

For more information or to access specific advice please contact us on 01983 897003 or by email: alison@realemploymentlawadvice.co.uk

Fixed Price Advice from Real Experts

As part of our HR Harbour annual subscription service for employers we provide guidance and training for employers, supervisors and managers. If you would like to know more about the HR Harbour Service and how you can get unlimited support from as little as £198 per month please contact me for a no obligation discussion – alison@realemploymentlawadvice.co.uk or you can find full details here: HR Harbour

Don’t forget you can contact us by telephone 01983 897003, 01722 653001 or 023 8098 2006


The information contained in this Podcast and post is provided for guidance and is a snapshot of the law at the time. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.

The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.

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