Contractual Notice and Furlough (17 July 2020)
HMRC has updated one of the Guides “Check which employees you can put on furlough…’ to confirm that you can use furlough grant to pay for contractual notice periods as well as the statutory notice periods.
GUIDE ‘Check which employees’ now states:
“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 or contractual notice period, however grants cannot be used to substitute redundancy payments.”
This clarification is very welcome and removes any ambiguity arising from last week’s update to the Guides that only referred to statutory notice periods.
The Guide can be accessed HERE