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Employers: furlough will no longer cover notice periods

by Jon Lacey

Published on 19th November 2020

Furlough payments will no longer cover notice periods, the government has announced.

In its latest guidance, HM Treasury has said that from 1 December statutory and contractual notice periods will not be covered by the furlough scheme (formally known as the Coronavirus Job Retention Scheme).

For claim periods starting on or after 1 December, employers cannot claim for any days between 1 December and 31 January 2021, during which the furloughed employee was serving a contractual or statutory notice period – this includes people serving notice of retirement or resignation.

Government guidance says that if an employee is made redundant, the employer should base statutory redundancy and statutory notice pay on their normal wage rather than the reduced furlough wage.

If an employee starts a contractual or statutory notice period on a day covered by a previously submitted claim, employers will need to make an adjustment.

This is an important update on the government’s advice that employers should take note off.

For help and advice relating to your business and support available from government, including the furlough scheme, please get in touch with the team at Optim

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