Furlough Workers - Contracts that finished in Feb

If a employee contract finished mid February - paid on the 28th February, can they be furloughed?

Didn't find your answer?

Morning all,

I think I know the answer to this question but the ex-employee is making me second guess myself.

We had an employee who finished mid-February this was not due to the COVID-19, they were then paid on the 28th February. They have come back to us asking to rehire them to be put on furlough and this seems to be common advice people are receiving.

My understanding is that this can't be done as he was not in employment on the 28th February and would be a fraudulent claim.

Any advice would be appreciated??

Kind regards,

Replies (15)

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By Duggimon
02nd Apr 2020 09:40

The job retention scheme is for employees who would otherwise have been made redundant as a result of the Coronavirus. That is not this person.

I think Martin Lewis says otherwise so you could always refer them on to him, presumably he's doing a lot of payroll amendments at the moment.

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By ireallyshouldknowthisbut
02nd Apr 2020 10:15

Sounds like fraud to me.

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By Carolynne
02nd Apr 2020 11:02

It has been confirmed by HMRC that employees made redundant after the 28th Feb, if they are re-hired by their employer, can indeed be covered by the JRS. It is therefore possible for employers to re-employ in order to benefit from this. But I am not sure if it applies if their contract ended prior to this date.

Here is the cut and paste from the following HMRC link confirming this.....

If you were made redundant after 28 February
Your employer can agree to re-employ you and place you on furlough instead. They’ll still be able to claim a grant to cover 80% of your monthly earnings, up to a monthly cap of £2,500.

https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronav...

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By KnowledgeShouldBeShared
02nd Apr 2020 11:06

Thank you for all your advice.

I thought this would be the case but for some reason, I was doubting myself.

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By LW64
02nd Apr 2020 11:24

This can also apply to people who left voluntarily - although in this case the dates don't work for him anyway.

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Replying to LW64:
Psycho
By Wilson Philips
02nd Apr 2020 11:53

Says who? We don't have the legislation yet so what is the authority behind this statement?

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Replying to LW64:
By Duggimon
02nd Apr 2020 12:10

The guidance says redundant, it is only people commenting on the guidance without any authority who say otherwise.

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By LW64
02nd Apr 2020 12:50

Martin Lewis said that the Treasury have confirmed it.

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Replying to LW64:
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By Carolynne
02nd Apr 2020 13:06

I agree with others posting on here about not everything Martin Lewis says is correct. The link I put above earlier only says REDUNDANT, HMRC say nothing about voluntary leavers, only Martin does and he is not the legislator.

Here again is the cut and paste from the following HMRC link confirming this.....

If you were made redundant after 28 February

Your employer can agree to re-employ you and place you on furlough instead. They’ll still be able to claim a grant to cover 80% of your monthly earnings, up to a monthly cap of £2,500.

https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronav...

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Replying to LW64:
Psycho
By Wilson Philips
02nd Apr 2020 15:34

That is not authority - the legislation, when it is published, will (hopefully) be.

Unless Martin has had written confirmation from Treasury and is prepared to post it here or on his site.

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Replying to Wilson Philips:
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By LW64
11th May 2020 12:45

Didn't see this answer.
Wording is...
"If you were made redundant OR STOPPED WORKING FOR your employer after 28 February 2020...

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By Matrix
02nd Apr 2020 16:21

Martin has started correcting information on his site, such as claiming working from home expenses, already. I wonder if his insurers read his site.

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Replying to Matrix:
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By Carolynne
02nd Apr 2020 16:33

I would laugh, but sadly, those without an accountant, will be believing everything he says.

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