Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

CoronavirusLatest NewsEconomics, government & businessEmployment contractsFurlough

Treasury urged to look again at coronavirus scheme loophole

by Adam McCulloch 3 Apr 2020
by Adam McCulloch 3 Apr 2020 Chancellor Rishi Sunak
Photo: PA Images
Chancellor Rishi Sunak
Photo: PA Images

Thousands of people could miss out on furlough payments through the Coronavirus Job Retention Scheme because they started new jobs in the past month.

Only those who were in employment before 28 February are eligible for the scheme; people who changed jobs after this date will not be paid under the plan.

Furlough

Top 10 HR questions March 2020: Coronavirus

What you need to know about furlough

Chancellor announces grants to cover 80% of wages

The government has now updated its guidance to address this problem (6 April 2020).

Telegraph Money has claimed that Treasury officials are looking into ways to help people who were caught between jobs in March, but no details have so far emerged. The Treasury did no confirm any such plans with Personnel Today.

The reason for the 28 February cut-off was to prevent fraud – February was the last full month before the lockdown, so the Treasury used the month to gauge people’s salaries when formulating the job retention scheme.

Treasury officials were said to accept that any cut-off date would have serious implications for people between jobs, but have taken the view that not every business or individual job in the country would be saved.

A Treasury spokesman told the Telegraph: “Obviously it’s important to have proof that individuals are connected to the firms that are furloughing them.”

But when asked by Personnel Today about the possiblity of rethinking the rules, an official simply said: “The Coronavirus Job Retention Scheme is aimed at those who would otherwise be unemployed as a result of coronavirus.

“It allows for those who were on the payroll of a company on 28 February but subsequently left to be put back on payroll and furloughed.

“Decisions around whether to offer to furlough someone are down to the individual company.”

As this implies, one route of escape from the loophole is for people’s previous organisations to re-employ them, then furlough them, so that they can receive payments, but few firms so far have agreed to do this.

MPs, including shadow chancellor John McDonnell, have urged chancellor Rishi Sunak to act rapidly to help. Liberal Democrat leader Ed Davey said people were being unfairly “hung out to dry”, with “their dream jobs turning into nightmares”.

BBC News spoke to one woman whose plight was highly representative of the position of several thousand people throughout the UK.

Natalie Greenway, 24, left a job in retail management to start a new role as a customer services manager at a call centre on 16 March.

Greenway, from Burbage, Leicestershire, said: “I got the call from my company saying ‘we’re so sorry, we can’t furlough you’.

“They were really sympathetic and offered to keep me on the books unpaid so I could have a job to go back to.

“I’m staying on the books, I’m not entitled to jobseekers as I am employed.”

The Telegraph highlights the case of Jo Burton, 34, from Kent, who works in events management – among sectors worst affected by the Covid-19 outbreak. She moved jobs at the beginning of March but was made redundant within a week.

“When the government announced its job retention programme my new boss offered to hire me and put me on it straight away, but it then turned out I wasn’t eligible,” she told the newspaper.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Simmons & Simmons employment partner Olly Jones, said the loophole was “something the government was very much aware of at the time its guidance was produced”.

Jones added that what is being referred to as a loophole was “intended as an anti-fraud measure to avoid, in particular, companies employing friends and family and immediately furloughing them. It remains to be seen whether ministers will bow to the pressure to change the position with the significant additional costs and potential for abuse such a change would bring.”

job retention scheme
Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

previous post
How can essential employers cope with increased demand on HR?
next post
Company car drivers offered tax relief during coronavirus lockdown

10 comments

Jamie kinsley Wilson 4 Apr 2020 - 6:52 pm

Dear sirs I am also one of those unfortunate enough Not to have qualified for the furlough and have been dismissed from my job of two weeks in, in March 2020 . Can you please help by giving me the correct department to appeal to this decision . I worked for a reputable company Scottish power and am absolutely devastated i cannot remain their because of Corona . I gave up two weeks of my time which involved training and a full weeks working selling energy for Scottish power, facing the public at a time of uncertainty and then as soon as the government decided I should socially distance my employer had to let me go , not in the 28th February and still not when I began my employment in mid March , they were allowed to take me on and allowed to let me go out and work with the public so why do I miss out and get hung out to dry two weeks into my new job just because the government want to use possible fraud as a loo hole .
Kind regards
Jamie kinsley Wilson

Chris Sellers 5 Apr 2020 - 12:31 pm

Does anybody know why it was 28/02 and not 29/02 that was chosen as the cut-off date for the Scheme, or did some Whitehall Mandarin not realise it was a leap year?

Tony Wilson 5 Apr 2020 - 1:01 pm

I just started with a new employer on the 16th March left my old job on the 13th, emailed my old employer, knew I was wasting my time but swallowed my pride. As anticipated it was a “no we can’t do this”.

Why would they do this for me after leaving? I left because they didn’t care about their employees.

I have a new job they would like to furlough me, HMRC have pay slips, I have emails stating my job offer all the proof they need. I have been very lucky as they are paying me 50% of my monthly salary but wonder how long this will last.

Why has the government created an obstacle in myself having to go cap in hand to my old employer when I have my new employer willing to furlough me.

The government are putting me out of work, “no one will be left behind”.

ooo 8 Apr 2020 - 1:03 am

I in employment on the 28th February but I left in March, is it okay for me to accept furlough payment ?

Steph 8 Apr 2020 - 9:54 pm

I’m a teacher and due to leave my current school after Easter to work at an independent school, except they have terminated me before I’ve even started. They can’t furlough me and will re-employ me when schools open. My current school will not keep me on payroll and can’t furlough me either because they are state funded. I’ve never claimed benefits and never been out of work. I’ve been a teacher in Suffolk for 23 years. Now I’m stuffed and never felt so let down. Catching a virus is the last of my worries.

Fernando Leon Ospina arango 9 Apr 2020 - 12:23 pm

We must to claim our rights, it wasn’t wrong to choose a new company to improve your earnings and look after your family, we always paid taxes but just because you began your job on March it doesn’t mean the government will not help you, what can we do? Just begging him for rethink again and try to solve this big trouble, please, please help us, this is not our fault and neither yours but we need your help

Thanks

Janet Allan 14 Apr 2020 - 9:07 am

I work last year March to November and started back with the same company in the 5th of March but still miss out

Jan 15 Apr 2020 - 4:16 pm

I handed in my notice at my school on 11th March
I’m unable to start my new job as a Carer as my employer is in isolation for covid19. I am on the payroll for my new job from 6/04/2020. My local authorities will not furlough me nor will my new employer. I’ve worked all my life and paid into the system. I and all the above people have been forgotten about. Please lift that 28/02/2020 cut off
I’ve no idea what to do!

Rita walker 18 Apr 2020 - 10:10 am

Sign “change furlough cut off date to 31.3 ” on change.org

Comments are closed.

You may also like

Minister defends Employment Rights Bill at Acas conference

16 May 2025

CBI chair Soames accuses ministers of not listening...

16 May 2025

Immigration white paper: 10 key points and reaction

12 May 2025

Downturn in hiring activity eased in April

12 May 2025

UK-US trade deal threatens bioethanol jobs

12 May 2025

Immigration white paper: strict limits on overseas recruitment

12 May 2025

CIPD links Employment Rights Bill with low business...

12 May 2025

Zero-hours workers’ rights to be extended from beyond...

8 May 2025

Government defends NIC relief in UK-India trade deal

7 May 2025

Connect to Work: how businesses can play their...

2 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...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 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+