Coronavirus: calculation of a week’s pay

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) (Amendment) Regulations, SI 2021/177, amend the Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations, SI 2020/814, regs 2 and 3 following the extension of the Coronavirus Job Retention Scheme (CJRS) to 30 April 2021.

The Regulations ensure that for periods of furlough up to 30 April 2021 various statutory entitlements based on a week’s pay and connected with termination of employment are not reduced as a result of an employee being furloughed under the CJRS. Those entitlements are:

• redundancy pay;
• notice pay;
• compensation for unfair dismissal;
• a payment resulting from a failure to provide a written statement of reasons for dismissal;
• a payment resulting from a failure to comply with an order for reinstatement or re-engagement; and
• remuneration for time off to look for employment or arrange training.

The regulations also extend the effect of SI 2020/814 regarding how a week’s pay is to be calculated for the purpose of deciding whether an employee is taken to be on short time for statutory purposes.