Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

CoronavirusLatest NewsNotice periodsFurloughEmployment contracts

Furlough funds can be used for contractual notice periods

by Rob Moss 17 Jul 2020
by Rob Moss 17 Jul 2020 Photo: Shutterstock
Photo: Shutterstock

Funds claimed from the government’s Coronavirus Job Retention Scheme can be used to pay for notice periods that go above and beyond the statutory minimum.

In an update to its furlough guidance today, HM Revenue & Customs clarified that contractual notice periods – for example, those that last three or six months rather the statutory amount – do qualify for a claim under the CJRS.

Alan Lewis, partner with Constantine Law, said: “There was uncertainty about full notice periods not being covered by the furlough scheme. This was caused by a sentence in the HMRC guidance which said that employers can use the coronavirus job retention scheme to pay statutory notice.

Furlough and notice pay

Calculating notice pay for employees on furlough

“This then begged the question as to whether or not longer contractual notice periods would be covered by the scheme. Thankfully, this morning, HMRC has updated its guidance to remove any uncertainty.”

The update guidance reads: “You can continue to claim for a furloughed employee who is serving a statutory or contractual notice period, however grants cannot be used to substitute redundancy payments.”

Last week, Daniel Barnett, barrister at Outer Temple Chambers, attempted to reassure employers and other employment lawyers that, because the Treasury Direction (TD) said nothing to suggest that statutory and enhanced contractual notice periods should be treated differently, there was nothing to worry about.

It doesn't – but that's kind of the point. Nothing in the TD suggests furlough can't be paid during notice (apart from the unclear para 2.2 which everyone wrongly panicked over), and certainly nothing suggestes treating statutory notice differently from contractual notice

— Daniel Barnett (@daniel_barnett) July 11, 2020

Statutory minimum notice periods vary depending on the employee’s period of continuous employment. An employee with one to two years’ continuous employment has a minimum notice period of one week; two to three years’ service means two weeks’ notice; and so on up to a maximum of 12 weeks’ notice for 12 or more years’ service.

Contractual notice is usually agreed in the contract of employment or written statement of terms and conditions and is often used to give employers more time to recruit a replacement.

Lewis added: “[Today’s guidance] has neatly resolved an issue that employers have been grappling with over recent weeks and which will without doubt be more commonplace as the scheme is being wound down and redundancies happen.”

Latest HR job opportunities on Personnel Today

Browse more human resources jobs

 

 

Rob Moss
Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
Exercise caution with Covid-19 testing
next post
PM: ‘Bring staff back to the office if it’s safe’

1 comment

Avatar
MARTIN 18 Jul 2020 - 11:51 am

Can any company use the Furlough scheme for August to October HMRC paying employes wages at 70% & 60% but can’t topup the rest as no cash TODO that
But if they can then it’s saving IN one company 100 redundancies
That way all Staff get paid more than dole thus giving them all time to try & find other jobs

Reply

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Dismissal after homophobic remarks was unfair due to...

24 Mar 2023

Childcare reforms will spur return to work

24 Mar 2023

Treasury accused of hypocrisy over push for older...

24 Mar 2023

Accenture to cut 19,000 jobs

24 Mar 2023

MPs warn of brain drain without skills investment

24 Mar 2023

Is the workplace now a ‘wokeplace’?

24 Mar 2023

Top employers join prison employment advisory boards

24 Mar 2023

25th Personnel Today Awards now open for entries

23 Mar 2023

Teacher vacancies are double pre-Covid levels

23 Mar 2023

Ikea vows to improve sexual harassment policies

23 Mar 2023

  • Sodexo Engage – Mountain of lost benefits ebook PROMOTED | Help your people feel the impact of your benefits...Read more
  • Neurodiversity: How to make the workplace more inclusive (webinar) WEBINAR | Can your organisation truly be inclusive...Read more
  • How HR can facilitate internal talent mobility PROMOTED | Should internal talent mobility be a priority...Read more
  • Bereavement in the workplace: How training can help HR get it right PROMOTED | HR professionals play an essential role...Read more
  • UK workforce mental wellbeing needs PROMOTED | The mental wellbeing support employers are providing misses the mark...Read more
  • The Workplace Today Guide: Why it pays to support your staff’s financial health PROMOTED | The cost of living crisis has hit...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+