Furlough Leave During Notice Period, How To Approach Redundancy As The Furlough Scheme Winds Down Personnel Today

If they usually work fixed hours they must be paid their full normal pay while theyre on statutory notice not their reduced furlough rate.

Sole trader self employed invoice template uk. Furlough and statutory notice pay. However an employee with normal working hours who is entitled to contractual notice of at least one week more than statutory notice will not benefit from the terms of section 88. Are those with statutory minimum notice sick or ready and willing to work.

So during furlough leave we believe there are three options. Some employees may therefore be entitled to furlough pay during their notice period and some may be entitled to full pay. Is a furloughed employee ready and willing to work.

Albeit that if they remain on furlough leave during their notice period the employer will still be able to recover their notice pay up to the usual 802500 cap. Employers can use furlough scheme during contractual notice periods by louron pratt 20th july 2020 1109 am 21st july 2020 430 pm guidance updated by hm revenue and customs hmrc confirms that employers can still claim for furlough payments if an employee has been put on a full notice period. Under the employment rights act 1996 notice pay entitlement varies according to the length of the employees notice period and the type of working hours.

I will continue to demonstrate this using the above example. If the employee leaving has been on furlough temporary leave during the coronavirus covid 19 pandemic they may have received reduced pay in the 12 weeks leading up to their statutory notice period. Accordingly unless the furlough agreement or employment contract says otherwise the employee is only be entitled to their 80 pay during their contractual notice period.

Pay the notice pay at 100 of contractual pay and recover the 80 2500 cap while it is available for all of the contractual notice period ie. Working out the answer is not as easy as it sounds. You need to look at why they are on furlough leave.

This means that the employer will be able to reclaim some or quite possibly all of the notice pay under the furlough scheme. You still have these rights even though you were furloughed when you. There is another complication in relation to furlough and notice pay.

This is deemed the no risk strategy.