Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Retention definition

What does Retention mean? In construction contracts, retention is a portion of each interim payment (often 3–5%) withheld by the employer or upstream contractor to secure completion and the remedy of defects. It is a contractual mechanism, not a statutory term, and is widely used across England and Wales, Scotland, Northern Ireland and Ireland in standard forms (e.g. JCT, NEC, PWC). Typically, half of the retention is released at practical completion (NEC: Completion; Ireland PWC: Substantial Completion) and the balance on expiry of the defects liability/rectification period, usually evidenced by a certificate of making good defects or a defects certificate. Sectional completion may trigger...

Furloughed employees: calculating a week’s pay for redundancy, notice, unfair dismissal awards and related entitlements under the 2020 Week’s Pay Amendment Regulations [Archived]

Published by a LexisNexis Employment expert

Practice notes

ARCHIVED:

This Practice Note is archived and not being maintained. It reviews the Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020), SI 2020/814, which ensure that employees furloughed under the Coronavirus Job Retention Scheme (CJRS) for any period ending on or before 30 September 2021 receive statutory Redundancy pay, statutory notice pay and other entitlements by reference to their usual earnings rather than the reduced furlough rate.

For details on the Coronavirus Job Retention Scheme (CJRS), extended to 30 September 2021, see Practice Note: Coronavirus Job Retention Scheme (extended version 1 May to 30 September 2021) [Archived]. For general guidance on working out a week’s pay under sections 221–224 of the Employment Rights Act 1996 (ERA 1996), see Practice Note: Calculating a week’s pay.

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020), SI 2020/814, which took effect on 31 July 2020, prescribe how a week’s pay is to be determined for an employee furloughed under the CJRS, for the purpose of calculating:

a statutory Redundancy payment

This archived note is not being updated further and is no longer maintained as stated...

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Web page updated on 22/05/2026

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