A client of mine had an employee who gave his notice in December, finished on 2nd January and went to a new employer.
Now that employer has furloughed all their staff but said they cannot furlough him as he hasn't been with them long enough. They said he needs to be on their books but can apply for furlough through the ex-employer.
I know an employee had to have been on their books as at a date in September so know his ex-employer could re-hire him to pay furlough. But can he still be an active employee (albeit with no pay) with the current one?
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I don't see that there's anything to stop him continuing to be on the books of his new employer, however if I were the previous employer I'd be concerned that I was abusing the scheme, and for what benefit? They still have to pay the NI and pensions.
If I were them I'd not be keen to get involved, and would at the very least seek the views of HMRC.
Yes, it doesn't quite sit right with me. If he had been laid off altogether I'd feel easier as you can re-hire an ex employee for furlough but as you say there are costs, also I believe the individual then has the same employee rights as before. It's not just an admin exercise for paying "benefits" through an employer rather than through the state.
Am I right in thinking the allowance for re-hiring an ex employee for furlough purposes is only if the new job fell through due to covid? Which isn't the same at all as the scenario here.
I think it would be more a case of the old job having fallen through due to Covid- it's the old employer after all that would have to demonstrate that their operations had been adversely affected by Covid and that they needed the help to maintain their workforce.
I thought I saw somewhere that it's not allowed but just looked at the guidance and it says yes , it's ok. But if the person left for another job, why would company wants to incur extra cost?
And to answer your original question yes - person can be employed by more than 1 company
Can they be re-employed and furloughed? Possibly.
But I would not recommend a client did so. Basically they would be taking on risks (the furlough being rejected and extension of employment rights to name just two) with no benefit to them. They did not let the employee go, so there is no real moral obligation there either.
The employee knew the current situation as well as anyone, but chose to hand in their notice anyway. Why should the old employer take on risks because of their decision.
