A change for the furlough scheme

For claim periods starting on or after 1st December 2020, employers cannot claim CJRS grant from the government to cover 80% of furlough reference pay salary for any days on or after 1st December 2020 during which the furloughed employee was serving a contractual or statutory notice period.

If you’ve made your employees redundant

Where you must make redundancies, you should do so in accordance with the normal rules. This includes giving a notice period and consulting staff before a final decision is reached. For claim periods relating to November, you can continue to claim for a furloughed employee who is serving a statutory notice period, however grants cannot be used to substitute redundancy payments.

For claim periods starting on or after 1 December 2020, you cannot claim for any days on or after 1 December 2020 during which the furloughed employee was serving a contractual or statutory notice period for the employer (this includes people serving notice of retirement or resignation). If an employee subsequently starts a contractual or statutory notice period on a day covered by a previously submitted claim, you will need to make an adjustment.

If you make an employee redundant, you should base statutory redundancy and statutory notice pay on their normal wage rather than the reduced furlough wage.

 Furlough from 1st December can no longer be used to pay:

• Contractual notice
• Statutory notice
• Retirement notice
• Resignation notice

Any payments due during those periods must be funded by the employer.

For more more information, please click here.