CONFIRMATION: Furlough monies can be used to pay notice pay
At the beginning of the week, we wrote to Members regarding new, additional words that had been inserted into Paragraph 2.2 of the Third Treasury Direction. This paragraph stated:
“Integral to the purpose of CJRS is that the amounts paid to an employer pursuant to a CJRS claim on a claim are used by the employer to continue the employment of employees in respect of whom the CJRS claim is made…”.
These new words raised the question whether the furlough monies could be used to pay employees’ notice pays.
It has now been widely reported that HMRC has confirmed that employers can use the furlough grants for employees during their notice period.
This is very welcome news to employers as we are aware that many employers were using the grant monies in this way.
Deletion of claim within 72 hours
One further small change is that the Guide “Claim for wages ..” has been updated and to tell employers they can use the online service to delete a claim within 72 hours of submitting it.