Clarification on notice periods and furlough

We have had a number of questions recently due to the change in policy on whether furlough can be claimed for notice pay.

November 2020 was the last month when you could claim for a furloughed employee terminated and serving a notice period.

For claim periods starting on or after 1 December 2020, you cannot claim for any days during which a furloughed employee is serving a contractual or statutory notice period.

This rule includes any reason for termination whether this is dismissal, retirement, or resignation.

Therefore, if you make an employee redundant, you must pay notice and any redundancy pay as “normal” and you are unable to claim a furlough percentage of the notice pay.

List of employers claiming furlough published

In a move to no doubt name and shame large employers and prevent fraudulent claims, HMRC has published the list of nearly 750,000 employers who made furlough claims in December 2020.

In February, additional information on the value of the claim (within a banded range) and the company number – for companies and Limited Liability Partnerships will also be published.

To view, the list click Employers who have claimed through the Coronavirus Job Retention Scheme.

Guidance updated to confirm parents are eligible for furlough

HMRC has updated its guidance to make it clear that an employee can be fully or flexibly furloughed if they’re unable to work, including from home, because they have caring responsibilities as a result of coronavirus.

This includes having to look after children who are at home as a result of the closure of school or childcare facilities, or for a vulnerable individual in their household.

In addition, you can furlough employees who are clinically extremely vulnerable and are shielding.

Currently, shielding advice applies in England until 21 February 2021, but it may be extended.

For full guidance click Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme.

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