COVID-19: Making furloughed employees redundant
14 July 2020
14 July 2020
“Where you must make redundancies, you should do so in accordance with the normal rules. This includes giving a notice period and consulting staff before a final decision is reached. You can continue to claim for a furloughed employee who is serving a statutory notice period, however grants cannot be used to substitute redundancy payments.”
Aspire Comment
It is important to remember that this ‘guidance’ is only ‘guidance’. The Treasury Directions put in place are the legal basis behind the CJRS. Some employers may feel it is more prudent to wait for clearer guidance, or in fact the updated legislation to reflect these recent changes.
Employers should also bear in mind that the guidance and the law are both open to interpretation. Poor drafting will leave huge scope for interpretation, and so it is essential that employers continue to retain all documentation relative to the calculation of the claim and correspondence between furloughed staff. Acting with reasonable care will give you the best defence in the event that HMRC investigate.
If you require further guidance on the CJRS, making redundancies or any other employment tax matters, call us today on 0121 445 6178 or email enquire@aspirepartnership.co.uk.