Furlough Payments and Notice – An UpdatePosted in : Supplementary Articles NI on 8 July 2020
Jones Cassidy Brett
6 July 2020
On 25 June 2020, the Government issued a revised version of the Treasury Direction on the Coronavirus Job Retention Scheme (CJRS). It is complex and mainly relates to the various calculations you need to undertake to flexibly furlough employees. The Government has also updated its Guidance. We have set out below some of the important points to note.
Notice during Furlough1. One of the most concerning issues arising out of the latest revision of the Direction was the suggestion that notice of termination of employment cannot be given during furlough. You may have seen a lot of panic about this point in the headlines over the weekend. However, the HMRC customer helpline has since clarified the point that employers can continue to use the CJRS during both redundancy consultation and for employees working out their notice periods. This HMRC clarification is not a legally binding view and there is currently no written confirmation from the HMRC on the point.
4. It is now clear from the Treasury Direction that claims cannot be made under the CJRS to pay in lieu of notice or to pay statutory redundancy payments. This was always the case but now this point is clear.
Other Points to note5. Paragraph 35 of the Treasury Direction also makes it clear that a claim cannot be made in respect of a period of unpaid sabbatical or other period of unpaid leave that falls between 1 July and 31 October 2020.
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