The Government has just published eagerly-awaited guidance regarding the extension of the Coronavirus Job Retention Scheme (or ‘furlough’) to 31 March 2020 (available here).
While Government support returns to the level of 80% of normal (up to a maximum of £2,500 per month), it is clear that the Scheme has changed since it was last at this level and may yet change further.
In particular, the guidance states that:
“The government is reviewing whether employers should be eligible to claim for employees serving statutory or contractual notice periods and will change the approach for claim periods starting on or after 1 December 2020, with further guidance published in late November”.
Guidance for prior periods confirmed that employees may be placed on furlough during their notice period, albeit that statutory redundancy payments and payments in lieu of notice could not be recovered. It appears that this may no longer be the case, although we must await the Government’s further guidance in late November for further clarity.
The decision may have significant implications for employers who are contemplating redundancies and could affect the validity of claims under the Scheme. Please contact us for advice on your position