16/11/2020

Following the extension of the Furlough Scheme to March 2021, updated guidance has been published relating to whether employees who are serving their notice can be furloughed.

The new guidance states that for furlough claims relating to November 2020, employers can continue to claim for a furloughed employee who is serving a statutory or contractual notice period. It is worth noting that furlough grants must not be used to pay redundancy payments.

However, for claims starting on or after 1 December 2020, employers cannot claim furlough grants for any days during which a furloughed employee is serving a contractual or statutory notice period. This includes people serving notice of retirement or resignation.

If an employee is furloughed but starts their notice period during the period of the claim, you will need to make an adjustment to pay back the wrongly claimed grant. This is done by either correcting it in your next claim or paying the sum back to HMRC within 30 days.

The government has also confirmed that any redundancy payments and statutory notice should be based on the employee’s normal wage and not their furloughed wage.

For advice about this rapidly changing situation or any employment matter, contact enquiry@beswicks.com or phone 01782 205000. For employers who need on-the-spot advice, check out our fixed-fee HR service. Beswicks HR ensures you have access to a fully qualified employment solicitor whenever you need them for a low monthly fee.