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Furlough Information

Blog Posts

Having to Consider Redundancies?

Posted on 12 August 2020

  Here we set out the key areas an employer needs to consider and work through to handle any potential redundancies.   Considerations before Redunda... Continue reading >

Staff Sickness on a Bank Holiday?

Posted on 18 May 2020

How sickness falling on a bank holiday is dealt with depends on whether bank holidays are included within statutory holiday entitlement or are in addi... Continue reading >

Furlough Information

Posted on 28 March 2020

We are in a strange and desperate place just now and due to numerous requests for documentation in relation to the furlough of staff we have temporari... Continue reading >

28
Mar, 2020

Furlough Information

Posted by Helen in In the News

We are in a strange and desperate place just now and due to numerous requests for documentation in relation to the furlough of staff we have temporarily created a new section in Doc Spot to include letters to staff in two main scenarios:

 

1. All of part of the employers business has ceased and there is no lay off clause in contracts of employment (or in the absence of a contract of employment) 

In this situation there is no automatic right to lay off staff without pay, so the business needs to either pay 100% of wages/ salaries OR seek the consent of employees to pay only the 80% which the employer can reclaim as a grant under the Coronavirus Job Retention Scheme.

 

 2. All or part of the employers business has ceased and there is lay off clause in contracts of employment 

In this situation the employer does have the right to lay off staff.  The normal rules on this are that for any workless day an employee is entitled to statutory guarantee pay (which is currently £29.00 per day), and there are 5 days of statutory guarantee pay available in a 13 week period.  To support retention of jobs, the Coronavirus Job Retention Scheme is offering grants of 80% of wages/ salary so this temporarily supersedes the statutory guarantee pay rules.

 

 

A few points about furlough under the Coronavirus Job Retention Scheme 

Furlough will only apply to those workers that you have no work for and have to be laid off as a result of that, as there is a risk to their jobs.  

Furlough must be for at least a 3 week period for any grant to be claimed via the scheme. 

No work must be completed by staff at all during a period of furlough. 

People working from home do not qualify for furlough because there is still work available to do. 

 

Other possible scenarios at the minute  

There is work – staff keep working and furlough is not applicable. 

Someone self isolates for 7 days with or without symptoms – SSP payable from day 1 of absence (you should ensure that they fill in a self-cert form when they return to work as at some point the company will be able to reclaim the SSP) – furlough is not applicable during this period but can commence after this period.   This is also applicable where an employer sends home someone who has reported for work with symptoms (yes there are still some out there who are turning up and not just ringing in!). 

Someone self isolates for a further 7 days because they have symptoms or because someone in their household does – SSP applies and is reclaimable as above, but you can ask them to get an isolation note form the NHS 111 service to cover this – furlough is not applicable during this period but can commence after this period. 

Over 70/ vulnerable people due to health conditions – are being advised to self-isolate for 12 weeks, so SSP is available and can be reclaimed from the Government for the whole of the 12 weeks – furlough is not applicable during this period but can commence after this period. 

People needing time off for childcare – where there is work for them and they are not furloughed, they need to take unpaid leave or annual leave as they are not unfit for work to fall into the SSP category. 

If an employee is on maternity leave then the statutory maternity provisions apply.  If an employee wants to end their maternity leave they must give 8 weeks’ notice to their employer to do so.  If there is no work at the end of that 8 week period then the employee can be furloughed, but if there is work available they will be required to return to work and the right to any balance of maternity leave is lost.