Coronavirus (COVID-19)—issues when ending furlough or terminating employment

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—issues when ending furlough or terminating employment
  • Returning the employee to work after furlough
  • Returning a team or workforce to work after furlough
  • Ending an employee's employment (including during furlough)
  • Using CJRS grant for notice pay and redundancy payments
  • Using CJRS grant for PILON payments
  • Redundancy consultation (including during furlough)
  • Consultation practicalities
  • Whether acting as an employee representative constitutes ‘work’ under the CJRS
  • Timing issues
  • More...

Coronavirus (COVID-19)—issues when ending furlough or terminating employment

This Practice Note considers issues for employers when ending furlough or terminating employment during the coronavirus (COVID-19) pandemic. It considers the ways in which an employer may end an employee’s period of furlough under the Coronavirus (COVID-19) Job Retention Scheme (CJRS), whether by returning the employee to work or terminating their employment during or following the end of furlough. The Practice Note also considers redundancy consultation during the pandemic, including during periods of furlough, and issues for employers when the CJRS comes to an end (currently scheduled for 30 September 2021).

Under the Coronavirus Job Retention Scheme (CJRS) as extended between 1 May and 30 June 2021, an employer can claim 80% of an employee’s usual salary for hours they do not work, up to a maximum of £2,500 per month, in respect of any furloughed employee who was employed on 30 October 2020, as long as certain conditions are met. For claim periods in July 2021, the level of grant will be reduced to 70% of usual wages up to a maximum government grant of £2,187.50 per month per employee and employers will be asked to contribute 10% up to a maximum of £312.50 for furloughed hours. For claim periods in August and September 2021, the level of grant will be reduced to 60% of usual wages

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