The Coronavirus Job Retention Scheme: Statutory Pay for Employees - | Hudson McKenzie


The Coronavirus Job Retention Scheme: Statutory Pay for Employees

On Monday 27th April 2020, HM Revenue & Customs published guidance documents for employers on how to calculate employees’ statutory pay for specific employees who have recently been furloughed.

The following employees will now be paid based on their usual earnings, not the furlough rate:

  • Workers taking paid maternity leave
  • Workers taking paid paternity leave
  • Workers taking paid shared parental leave
  • Workers taking paid adoption leave
  • Workers taking paid parental bereavement leave

This will apply to employees who take leave on or after 25th April 2020. They will receive either Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP) and Statutory Parental Bereavement Pay (SPBP).

Different rules apply when trying to calculate an employee’s Average Weekly Earnings (AWE) if they were placed on furloughed leave and you paid them during that time using the grant by the CJRS. To calculate AWE for part of the eight-week period they were on furloughed leave, the sum will be the highest amount of either:

  1. The money they literally received from their employer; or
  2. The money they would have received from their employer had they not been on furlough

There are definite circumstances that affect payment of the types of statutory pay below.

  • If an employee becomes ill;
  • If an employee leaves their employment;
  • If an employee dies;
  • If an employee is granted a pay rise;
  • If the child of an employee dies;

Some key points to consider:

  • If an employee dies and they are entitled to receive SMP, you must pay SMP for the week in which they pass but not for any weeks after the Maternity Paid Period (MPP).
  • If an employee’s baby dies as a stillbirth and they are entitled to receive SPP, you must continue to pay the employee SPP. This applies if the stillbirth occurs following the 24th week of pregnancy.
  • If an employee leaves their employment and they are entitled to received SPBP, they cannot obtain statutory parental bereavement leave. If they left before the child’s death date, then they will not qualify for SPBP. However, they may qualify if they left after the child’s death date.
  •  If an employee becomes ill and they are entitled to receive SAP, you must check whether they qualify to claim Statutory Sick Pay (SSP). You cannot pay them SAP for any week where they are entitled to received SSP.

Should you have any queries regarding the above information or you are an employer and would like to find out more, please contact a legal professional at Hudson McKenzie via email at or by telephone +44 (0)20 3318 5799.