Extended furlough scheme (or CJRS) cannot be used for employees working notice

HM Treasury has confirmed that statutory and contractual notice periods will not be covered by the furlough scheme from 1 December 2020.

The first set of amended CJRS guidance was published on 11 November which included a statement that for claim periods relating to November employers can continue to make staff redundant while on furlough and that employers can still claim for those individuals serving statutory notice but that grants cannot be used to substitute redundancy payments.

On Friday 13 November, a further amendment was made to the guidance. For claim periods on after 1 December, employers cannot claim for any days between 1 December and 31 January 2021 for employees who are serving a contractual or statutory notice period. This includes staff working a notice period of resignation or retirement.

If an employee subsequently starts a contractual or statutory notice period on or after 1 December but on a day covered by a previously submitted claim, employers will need to make an adjustment. Click here for details: https://www.gov.uk/guidance/pay-coronavirus-job-retention-scheme-grants-back

Remember

Where employers make redundancies, these must be done in accordance with employment law. This includes giving a notice period and carrying out staff consultation before a final decision is made.

Furloughed employees who are made redundant must receive statutory redundancy and statutory notice pay based on their normal wages rather than the reduced furlough wage.

Key dates

• 30 November 2020 is the last day employers can submit or change claims for periods ending on or before 31 October 2020
• claims for furlough days in November 2020 must be submitted by 14 December 2020.

We Can Help You

For specific advice for your business, please get in touch with our specialist Employment Law team through this website or by calling 0330 404 0778.

Our partners at Ashtons HR Consulting are also on hand to assist you.

This information is correct at 9am on 19 November 2020.