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Resignation during furlough - notice pay

Amanda Jane Roberts

Hi everyone,

i thought i had this absolutely clear in my head but I've just been questioned about it.......if an employee resigns whilst on furlough giving the statutory required notice period I believe they should be paid the notice period at 100% of normal pay and not at the reduced 80% furlough rate ......is this correct?

Thanks in advance.

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  • Hi Amanda,

    Hmm... this has been one of the most frequently asked Qs over the last year, so lots of threads on this.

    Keith quotes from the CIPD FAQs here. 

    For the sake of completeness... if the circumstance is redundancy (I know this isn't), the guidance is here (scroll down to 'Notice pay').

  • in reply to Steve Bridger

    This ACAS guidance looks accurate:

    www.acas.org.uk/.../pay-during-the-notice-period

    So, if that bizarre ‘get out’ statutory provision about contractual notice entitlement from employer at least a week longer than statutory notice doesn’t apply, then someone on furlough who has resigned is  entitled to *statutory only* - ie one week only - at full normal pay and the rest of their notice period if it’s contractual and more than one week at the rate of pay they’re currently receiving, whether that’s SSP or reduced contractual sick pay or furlough pay or whatever.

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  • in reply to Steve Bridger

    This ACAS guidance looks accurate:

    www.acas.org.uk/.../pay-during-the-notice-period

    So, if that bizarre ‘get out’ statutory provision about contractual notice entitlement from employer at least a week longer than statutory notice doesn’t apply, then someone on furlough who has resigned is  entitled to *statutory only* - ie one week only - at full normal pay and the rest of their notice period if it’s contractual and more than one week at the rate of pay they’re currently receiving, whether that’s SSP or reduced contractual sick pay or furlough pay or whatever.

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