Provided that the employee continues to be eligible for the Scheme, there is no reason in principle why a redundancy process cannot be carried out while they are on furlough. That is a consequence of the general rule that the Scheme does not over-ride any feature of employment law, including the rules governing redundancies. The Guidance was amended on 17 July 2020 to clarify that the grant could continue to be claimed for periods of contractual well as statutory notice. However employers must bear the full cost of redundancy payments, which should be calculated on pre-furlough wages.
However, this approach has been changed from 1 December onwards. From that point, no claim can be made in respect of an employee for periods during which they are under notice of termination of their employment, whether this is because of redundancy or for other reasons.