A company re-employed a left member of staff and furloughed per government guidance/advice.
The company is looking to return to work on 1st June with all staff. Does this mean at 31st May the re-employed person is given P45 and furlough no longer claimed? or does the company keep that person on the payroll and furlough until the end of October 2020?
Replies (15)
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No, you don't have to bring everyone back into work.
You can continue to furlough this single employee while it's costing you nothing, which may change on 1st August. Or it may not. We don't know yet.
However - it begs the question - what if this lad starts work at another job, yet still gets his furlough money from you ? Is he claiming fradulently ? Technically, I think not. But there's no doubt he'd be quids in at the Government's expense.
Me too, but I stil don't get why the govt put this in. OK it protects those who had genuinely been made redundant or had resigned to go to another job but it seems a very open door to fraud, especially the multiple employer part.
I have no idea why anyone would do this in the first place. I would let them go before they accrue any employment rights, having taken legal advice etc.
Thanks for your replies.
HMRC have confirmed the person can be kept on furlough until the scheme stops.
Aye, we all thought that - but what will you do in August if you're paying him 80% of his wage and you're only getting 60% back ?
We'll know what's happening in the next 10 days.
Until the scheme stops, plus the holiday they've accrued, plus the notice period to which they may be entitled.
Yeh, rely on that when the 'employee' claims his employee rights which are nothing to do with HMRC and whether a claim can be made under the CJRS.Thanks for your replies.
HMRC have confirmed the person can be kept on furlough until the scheme stops.
What could possibly go wrong?
Do you have written terms of employment or employment contracts? You might want to consider whether this employee is permitted to work elsewhere while still being employed by you.