Furlough is not just for Christmas

legal_updates

Furlough is only in place for companies which are being affected by coronavirus (Covid-19).

Author: Roxanne Bradley
Published:
Reading time: 2 minutes

This article is 10 months old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

The government has again updated their guidance and whilst it was obvious to some, they have since clarified it in writing. 

Furlough is only in place for companies which are being affected by coronavirus (Covid-19). 

The government has stated:
You should not place employees on furlough just because:

  • they are going to be on paid leave
  • you usually do less business over the festive period

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#history


Many businesses such as the motor trade experience dips in their sales over the festive/winter period but the usual drop in sales does not warrant employers to put their employees on furlough. 

Due to it being the festive season, employees may wish to use some of their annual leave. Remember, if the employee is on furlough, they can still use their annual leave. If the employee is on flexible furlough, then the hours taken for the annual leave during the claim period will be counted as furloughed hours rather than working hours, and these hours must be paid at the normal rate. So, you will need to ensure the employee receives 100% of their pay for any days taken as annual leave (essentially, you are topping this up from the 80%). 

Roxanne Bradley

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.