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Furlough Friday and the Treasury Direction

It appears Furlough Friday was back with another update in the guidance on 13 November 2020 along with an update on the Treasury Direction. The Treasury Directions form the legal framework for the Coronavirus Job Retention Scheme.

There is a key update for those wanting to make employees redundant using furlough!

The guidance state that “for claim periods starting on or after 1 December 2020, you cannot claim for any days on or after 1 December 2020 during which the furloughed employee was serving a contractual or statutory notice period for the employer (this includes people serving notice of retirement or resignation).”

For claim periods relating to November the guidance state that employers can claim for a furloughed employee who is serving a statutory notice period only. There is no reference to contractual notice.

The Treasury Direction formally confirms the extension of the CJRS to 31 March 2021 and sets out the detail on how it will work from 1 November 2020 to 31 January 2021. After this date it is expected that there will be another Treasury Direction to cover February and March. The Treasury Direction also confirms the withdrawal of the Coronavirus Job Retention Bonus.

The Treasury Direction details that it will be a condition of the making the claim that the employer accepts that HMRC will publish information about the CJRS on the internet. It also states that furlough agreements must be in place before the start of the relevant claim period (but may be varied during the claim period).

 

Are you making redundancies and using furlough? Get in touch so that you are doing it right!


Furlough Friday and the Treasury Direction

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