Employers in the UK will not be able to lay off furloughed staff using the financial pressures of the pandemic as an excuse. If they do so, they will have to pay back the money they have received from the Government as furlough support.
Apparently, the very purpose of the coronavirus job retention scheme has been reworded to clarify that the money that is granted by the Government has to be mandatorily used by the companies to retain the employees.
With this clarification, employers will not be able to indulge in fraud or lay off their employees who are right now on furlough.
When companies in the UK send their employees on furlough, they are able to claim 80 per cent of their wages from the Government. However, now the Government has made it mandatory for them to use that money to ensure that the employees remain employed with the companies who have received this financial assistance.
The rewording of the initiative followed the mass layoffs of the furloughed employees of British Airways.
With the recent clarifications issued, companies will not be able to cut jobs using the pandemic as an excuse or in any way make the terms and conditions of employment of their existing staff weak.
However, this also means that it may not be possible for employers to use furlough funds to pay notice periods. If they have already done so, chances are that they may have to return that money to the tax payers.
19 Comments
Menzies aviation from Heathrow trying to do this , goverment should check this company
The government urged companies to take people back into employment that were getting laid off or changed jobs that never materialised therefore can’t turn around now and say they can’t use this money to be used as termination of employment. Another turncoat decision by this useless shower.
I am wandering how does this apply to staff employed through employment agencies
To little to late!
Yes, HMRC has moved the goal posts so now there will be lots of legal challenges ahead. As was said above, you can’t suddenly contradict the advice that HMRC gave me too back in April when I changed my job at the end of February – which was to ask my previous employer to rehire me to Furlough me, even though they had a recruitment freeze and the position technically didn’t exist any more! It was lucky for my previous company to have refused to do this – because under these new rules , they would now have to pay that money back unless they had another excuse, like depressed oil prices and less business (but that too was indirectly due to the Covid-19 effect)
What’s up to all, how is the whole thing, I
think every one is getting more from this web page, and your views are nice in favour of new viewers.
McLaren Automotive did this to me in April, using furlough as funding for them to pay my notice period/and a number of other employees and as an excuse to only pay 80% of our final salary.
I have been made reduntent from work while on furlough they used covid 19 plus attendance for time of last year for operation and loseing my dad
Can we get the link to theses updates? Myself and all most everyone I work with have been made redundant because of the pandemic and my employer is using the job retention scheme to pay our notice.
This had happened to me and all most everyone I work with (about 30 people) could I get the a link to the source of this article please?
Can they reduce your hours and give them to a family member who was recently taken on?
This move by the government really make sense, because the main reason for the scheme was to enable employers to retain jobs. So for employers to turn round and lay off workers on the excuse of the pandemic is a betrayal and gross ingratitude.
But surely, it current situation, myself as a LHR worker, I would rather be laid off than made redundant!
How will this effect temp agency staff who were on furlough. I’ve been emailed by Reed and advised 31 July will be my last day on furlough as its not sustainable for them to pay my nics. Please advise. Thank you
Chartwells part of the compass group are trying to do this they are trying to make jobs redundant due to covid 19
Hi I do need help as my company are making me redundant while Furlough using the 80% government money please this should not happen as it is cheat all my colleagues and myself are going to be unemployed which on fair please help us
Pret manger from Birmingham also trying to do this , goverment should check this company, This is happening to me and all most everyone I work with (about 25 people), please can someone advice
STORK have said they will not utilise the”job retention scheme ” to save jobs as they cannot guarantee a job at the end and there is a cost to them … but abusing the “job retention scheme ” to pay their staffs notice periods ?
Abuse of the system at its finest.
Halliburton are laying off staff who have been furloughed. As are many oil companies.