Q&As

If an employee is made redundant while on furlough, can an employer continue to claim 80% of his salary during the notice period?

read titleRead full title
Published on LexisPSL on 23/04/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • If an employee is made redundant while on furlough, can an employer continue to claim 80% of his salary during the notice period?

If an employee is made redundant while on furlough, can an employer continue to claim 80% of his salary during the notice period?

Details of the Coronavirus Job Retention Scheme (CJRS) are set out in:

  1. the HMRC guidance for employers: Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme

  2. the HMRC guidance for employees: Check if your employer can use the Coronavirus Job Retention Scheme, and

  3. The Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction (Treasury Direction)

On the face of it, there is nothing to say that an employee who has been furloughed under the CJRS cannot be made redundant.

When the CJRS was first announced, its stated purpose was that ‘workers in any part of the UK can retain their job [our emphasis], even if their employer cannot afford to pay them, and be paid at least 80% of their salary’ (see the Chancellor’s statement of 20 March 2020).

The 15 April version of the employer guidance included the following:

When the government ends the scheme

When the government ends the scheme, you must make a

Related documents:

Popular documents