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Furlough Scheme

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Is there any truth in the rumour when making staff redundant all monies received from HMRC for the Furlough Sceme will have to be paid back?

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By Mr_awol
07th Jul 2020 09:53

It would be nice in many cases, but I doubt it will happen.

The rules do only allow claims 'in accordance with the purpose of the scheme' and the obvious purpose of the scheme is the retention of jobs, obviously. I think it would be a stretch, though, and possibly unfair, for a blanket clawback of all furlough grant for all employees subsequently made redundant. It might be that some employers' circumstances genuinely changed and they had genuine intentions of keeping the employees on but now cannot.

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By kestrepo
07th Jul 2020 19:07

This is the closest to the rumour that I have read:

https://www.telegraph.co.uk/business/2020/07/04/furloughed-workers-gain-...

The Summer Budget Statement is tomorrow and if things were set to change then I would expect it to feature.

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By Matrix
07th Jul 2020 20:14

I am too tight to subscribe so in which circumstances does it say employers have to pay it back? Thanks

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