Shorter Reads

Furlough Extension: Further Guidance Released

Following the government’s announcement last week that furlough is to be extended until 31 March 2021, further guidance on the scheme has now been published. Our Employment team provides an overview.

1 minute read

Published 11 November 2020

Authors

Share

Key information

Following the government’s announcement last week that furlough is to be extended until 31 March 2021, further guidance on the scheme has now been published.

If you missed our furlough extension update last week, click here for the key points of the scheme including how much employers can claim, how the scheme can be used, cash grants for businesses which have been forced to close and employee eligibility.

In addition to what we knew last week, the government has now specified that:

  1. The government is reviewing whether employers should be able to claim for employees serving contractual or statutory notice periods and will change the approach for claim periods starting on or after 1 December 2020. This means that employers may not be able to use the furlough scheme for any employees’ notice periods (including for redundancy dismissals) from 1 December 2020. Further guidance on this will be available in late November.
  2. From December 2020, HMRC will publish employer names for companies (as well as their company registration numbers) and LLPs for those who have made claims under the scheme from December 2020 onwards.
  3. If an employer has overclaimed for furlough, they should pay this back to HMRC immediately. More guidance on this can be found here. This may be particularly important reputationally now that employers will be identified from December onwards as someone could report employers which they suspect are misusing the scheme or using the scheme fraudulently.
  4. Clinically extremely vulnerable individuals are those individuals who have received a letter from the government or their GP informing them that they should be shielding and therefore not attending a physical workplace. Employers can furlough these individuals if their work cannot be done from home and they were on payroll before 30 October 2020 – even if there is work for that employee to do in the physical workplace.
  5. Holiday entitlement provisions under furlough have not changed. This means that when an employee on furlough takes annual leave their pay should be topped up to 100% to avoid any breach of contract claims. Unless the employment contract states otherwise employers can force employees to take annual leave, even on furlough, as long as the employee is given twice as much notice as the annual leave they will be made to take. For example, if an employer wants an employee to take one day’s annual leave they would need to give two days’ notice.
  6. There is no limit on the number of employees an employer can claim for.
  7. The employer must confirm to the employee in writing that they have been furloughed and keep a written record of this for five years. Wherever possible, furlough should be agreed with the employee as it could constitute a contract variation.

Full details of the government’s further guidance can be found here.

If you have any questions about furlough, coronavirus planning or any other employment related queries then the Collyer Bristow Employment team is on hand to help.

Related latest updates
PREV NEXT

Arrow Back to Insights

Shorter Reads

Furlough Extension: Further Guidance Released

Following the government’s announcement last week that furlough is to be extended until 31 March 2021, further guidance on the scheme has now been published. Our Employment team provides an overview.

Published 11 November 2020

Associated sectors / services

  • Employment law for employees
  • Employment law for employers

Authors

Following the government’s announcement last week that furlough is to be extended until 31 March 2021, further guidance on the scheme has now been published.

If you missed our furlough extension update last week, click here for the key points of the scheme including how much employers can claim, how the scheme can be used, cash grants for businesses which have been forced to close and employee eligibility.

In addition to what we knew last week, the government has now specified that:

  1. The government is reviewing whether employers should be able to claim for employees serving contractual or statutory notice periods and will change the approach for claim periods starting on or after 1 December 2020. This means that employers may not be able to use the furlough scheme for any employees’ notice periods (including for redundancy dismissals) from 1 December 2020. Further guidance on this will be available in late November.
  2. From December 2020, HMRC will publish employer names for companies (as well as their company registration numbers) and LLPs for those who have made claims under the scheme from December 2020 onwards.
  3. If an employer has overclaimed for furlough, they should pay this back to HMRC immediately. More guidance on this can be found here. This may be particularly important reputationally now that employers will be identified from December onwards as someone could report employers which they suspect are misusing the scheme or using the scheme fraudulently.
  4. Clinically extremely vulnerable individuals are those individuals who have received a letter from the government or their GP informing them that they should be shielding and therefore not attending a physical workplace. Employers can furlough these individuals if their work cannot be done from home and they were on payroll before 30 October 2020 – even if there is work for that employee to do in the physical workplace.
  5. Holiday entitlement provisions under furlough have not changed. This means that when an employee on furlough takes annual leave their pay should be topped up to 100% to avoid any breach of contract claims. Unless the employment contract states otherwise employers can force employees to take annual leave, even on furlough, as long as the employee is given twice as much notice as the annual leave they will be made to take. For example, if an employer wants an employee to take one day’s annual leave they would need to give two days’ notice.
  6. There is no limit on the number of employees an employer can claim for.
  7. The employer must confirm to the employee in writing that they have been furloughed and keep a written record of this for five years. Wherever possible, furlough should be agreed with the employee as it could constitute a contract variation.

Full details of the government’s further guidance can be found here.

If you have any questions about furlough, coronavirus planning or any other employment related queries then the Collyer Bristow Employment team is on hand to help.

Associated sectors / services

  • Employment law for employees
  • Employment law for employers

Authors

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):



    Article contributor

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up

    Find out about Business

    Find out about Dispute Resolution

    Find out about Individuals & Families

    Find out about Real Estate

    We are Collyer Bristow - The law firm for those that
    value individuality, creativity and collaboration.

    Legal & Pricing info Regulatory InformationAccessibilitySitemapPricing and service information

    Listen to our latest podcast: Budget Miniseries: Impacts on Families with US Connections (Part 1)

    Listen to our latest podcast: Cracking the Code on Directors’ Service Agreements

    Read our latest article: Economist, or just economical with the truth? How can employers respond to ‘fake claims’ on a CV?

    Listen to our latest podcast: Autumn Budget 2024 Special (Part 2)

    Read our latest article: ‘Promoting the integrity of the register’: The new Companies House approach to non-compliance

    ExpandNeed some help?Toggle

    < Back to menu

    I have an issue and need your help

    Scroll to see our A-Z list of expertise

    Get in touch

    Get in touch using our form below.



      Business Close
      Private Wealth Close
      Hot Topics Close