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COVID-19: Let us know what you think of the Government's unprecedented support for workers...

Steve Bridger

Good evening Everyone.

In response to the Chancellor’s unprecedented package of financial measures to support workers, Peter Cheese has made the following statement:

CIPD welcomes unprecedented support for workers and urges employers to hold their nerve while funds arrive

As Peter says...

“The challenge now is the speed with which employers can access these funds to avoid redundancies being made, given it could be the end of April before they become available.

“Employers need to hold their nerve in this challenging time and make every effort where they can to retain their staff while waiting for the job retention funding to come through. Concerns over immediate cashflow and payroll challenges should be met by the business loans announced by government, which should be available in a matter of days."


I've lost count of the number of times I've uttered the word "unprecedented" in recent days. My head is spinning.

Please do let us know what you think of the latest Government announcement... and share your thoughts and concerns below.

Finally, I just wanted to say that all of us at CIPD would like you to know we stand with you at this time.

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  • Has anyone been approached by an employee who has recently left the organisation who is now reaching out to be furloughed?

    We are a public sector employer, an employee left us on 28 February and started with their new employer on 2 March. The new employer can not furlough the individual due to them being on our payroll. I see the HMRC guidance refers to putting employees who were made redundant and re hired but it doesn’t mention if someone chose to leave employment.

    Would it be expected that we put the individual on furlough as a standard measure or is it the choice of the employer on what to do?

    I would appreciate any advice on this one.
  • in reply to Lynn Tennent

    The problem is that they are not on your payroll so you cannot claim the 80% support for them

    The HMRC "qualifying date" seems to be designed to identify those who were already continuously employed when the scheme started, and whose continuous employment will then be protected (from redundancy) by the scheme. in the circumstances you describe this criterion and objective are not being achieved: The employee has not been continuously employed by the new employer since the 28th, that employment didn't start until three days after the qualifying date (don't forget the 29th). Neither is their (previous) continuous employment with you being protected. By claiming for them you would therefore be claiming for someone who is not your employee, which would be fraud, as would be the new employer claiming they were employed from the 28th.

    Unless some greater clarity, "closing the gap" is forthcoming from HMRC, it therefore seems that anyone who has left an employment on or before the 28th, to start a new one on the 1st March (or later), has thus disqualified themselves from the "furlough" subsidy.

    (...As far as I can see....)

    P

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  • in reply to Lynn Tennent

    The problem is that they are not on your payroll so you cannot claim the 80% support for them

    The HMRC "qualifying date" seems to be designed to identify those who were already continuously employed when the scheme started, and whose continuous employment will then be protected (from redundancy) by the scheme. in the circumstances you describe this criterion and objective are not being achieved: The employee has not been continuously employed by the new employer since the 28th, that employment didn't start until three days after the qualifying date (don't forget the 29th). Neither is their (previous) continuous employment with you being protected. By claiming for them you would therefore be claiming for someone who is not your employee, which would be fraud, as would be the new employer claiming they were employed from the 28th.

    Unless some greater clarity, "closing the gap" is forthcoming from HMRC, it therefore seems that anyone who has left an employment on or before the 28th, to start a new one on the 1st March (or later), has thus disqualified themselves from the "furlough" subsidy.

    (...As far as I can see....)

    P

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