Updated advice on arrangements for putting staff on furlough under the Job Retention Scheme issued by the government last week have made the position clearer but still leave some areas of uncertainty, according to manufacturing organisation Make UK.
The guidance for employers states the scheme is “designed to help employers whose operations have been severely affected by coronavirus (Covid-19) to retain their employees… However, all employers are eligible to claim under the scheme”. It adds: “if you cannot maintain your current workforce because your operations have been severely affected by Coronavirus you can furlough employees”.
Make UK sees this as “a helpful softening” in the wording. “In earlier versions of the guidance the scheme was said to be available as ‘an alternative to redundancy, lay-off or unemployment’, whereas now it seems that businesses have some discretion over the circumstances in which they choose to furlough,” the organisation says.
The guidance expressly states that employees who are unable to work because they have caring responsibilities resulting from coronavirus can be furloughed. This suggests that employees who need to look after children or a vulnerable person in their household can be furloughed, even if there is work for them to do.
By contrast, for those who fall into the “shielding” category – people who are highly vulnerable because of an underlying health condition, or those who need to stay at home with someone in that category – the guidance has been amended to clarify that they may only be furloughed if they cannot work from home and would otherwise have to be made redundant.
Make UK says the guidance is clearer on which types of workers can be claimed for. They can be on any type of employment contract, including full-time, part-time, agency or zero-hour contracts if they were on the employers’ PAYE on or before 28 February. Foreign nationals are eligible if they were on a UK PAYE payroll on 28 February.
The new guidance also makes it possible to re-hire and then furlough an employee who had voluntarily resigned after 28 February in order to start a new job, as well as employees who had made redundant after 28 February. However, individuals do not have the right to be re-hired.
Make UK says the updated guidance still does not deal with the question of holidays, or the position of people who fall ill or need to self-isolate during furlough leave.
https://www.makeuk.org/news-and-events/news/2020/04/06/government-updates-furlough-guidance