HUNDREDS of thousands of workers face receiving P45s within days unless the Government extends the furlough scheme, Labour has warned.

The Government’s job retention scheme is being wound down from August, with the Government moving from paying 80% of wages up to a cap of £2,500 to 60% up to a cap of £1,875 by October.

Employers will be expected to top up wages and pay other contributions as part of the changes.

Speaking in the Commons, shadow business secretary Ed Miliband said: “Yesterday, Make UK, the manufacturers’ organisation, said a furlough extension was vital and I quote, ‘to prevent a jobs bloodbath in aerospace and automotive’.

“We see the looming threat to sectors that have not yet reopened like events and exhibitions and those operating well below capacity like hospitality.

“Yet from next week, the Government is insisting that every single employer, whatever their industry, will have to start contributing to the furlough.

“Does the Business Secretary not recognise that this decision to phase out the furlough irrespective of circumstance risks handing a P45 to hundreds of thousands of workers?”

Business Secretary Alok Sharma replied: “The furlough scheme will have been up and running for a full eight months providing a huge amount of support to over nine million jobs and of course it is becoming more flexible, it is allowing people to return to work part-time.

“And (Mr Miliband) will also know the Chancellor (Rishi Sunak) set out the job retention bonus as well.”

Labour former minister John Spellar added the UK faces a “tsunami of job losses”.

Four things everyone facing redundancy should know

Personal finance experts from TheMoneyPig.com have revealed four things everyone facing redundancy should know.

With the wind-down of the furlough scheme, big companies such as Boots and John Lewis have announced thousands of job losses and redundancies.

1. Redundancy cheque

Working out how much redundancy money you will get is a great way to be able to plan and make important decisions for the future.

You only qualify for statutory redundancy pay if you’ve worked for the employer for at least two years.

The amount you’ll get is dependent on the amount of time you’ve worked for the company, as well as your age.

Your current employer can pay more than just the statutory rate, if that’s something they offer.

2. Tax

You won’t need to pay any tax on your redundancy pay if it’s under £30,000.

You will be taxed on any payment over this amount.

Bonuses, National Insurance contributions and unpaid wages will all be tax deductible.

3. Notice period

If you have been employed at the company for over a month but under 2 years your employer only needs to give one week’s notice before redundancy.

This is increased by a week per year you’ve worked there up until 12 years, where it’s 12 weeks’ notice for 12 years work or longer.

Employers can ignore the notice period, or cut it short, but only if they give you payment in lieu of notice.

They should give you the basic payment you would have expected throughout the notice period.

4. Consultation

You are within your rights to enter a consultation period with your employer.

During this period you can ask why you’re being made redundant and if there are any alternatives. There are no rules surrounding the consultation period if less than 20 redundancies are happening at the company.

If your employer is making 20 or more individuals redundant, a representative from either a trade union or an elected employee should be present at all meetings.

These discussions should also cover ways to avoid or reduce the number of redundancies, the reasons for them and how to limit the effects for employees.