Skip to content
Speak to an expert on
0113 869 8101
×
  • Home
  • Thrive Wellbeing
  • Outsourced HR
  • Events
  • News/Blogs
  • Thrive Women
  • Thriving Minds
  • Thrive Tribe
  • Our Costs
  • Contact Us
  • My Account
Thrive Wellbeing Login
×
Employment Law
Learn about our Employment Law Services
  • Employment Status
  • TUPE
  • Whistleblowing
  • Consultancy Agreements
  • Restrictive Covenants
  • Constructive dismissal
  • Unfair dismissal
  • Discrimination
  • Settlement Agreements
  • Tribunal
Outsourced HR
Learn about our Human Resources Services
Mental Health & Diversity
Learn about our Mental Health Services
  • Supporting wellbeing in the workplace: Guidance for best practice
  • Mental Health In The Workplace

Extended Furlough: Rehiring Employees

Author: #Admin Published 8th December 2020

After recently extending the furlough scheme until March, with review in January, the Government have added some noteworthy amendments. Of particular significance is the introduction of the principle of rehiring redundant employees and placing them on the extended furlough scheme.

“Employees employed as of 23 September (day of Job Support Scheme Announcement) and notified to HMRC by RTI on or before that date, who has since been made redundant can be rehired and placed on the Scheme.”

Put simply, those that were employed on or before the 23 September 2020 (i.e their employer made a Real TimeInformation payroll submission on their behalf on or before this date), and have since either been made redundant or voluntarily left their position, are eligible to be rehired by their employer and placed on the furlough scheme.

What is the process?

 The actual process of rehiring these employees appears to be fairly straightforward:

  • Reemployment offer and acceptance (we always recommended this is done in a written agreement)
  • Employee agrees to be furloughed, in accordance with the HMRC rules.

Albeit the process is unlikely to pose any difficulties, the problems start to arise when considering the implications it could have for the employer, largely because there are a lot of questions that simply do not have answers yet and won’t for months or even years.

Areas of uncertainty

How will their employment be viewed?

It is unclear whether the reemployment will be classed as ‘new’ employment or continuation of ‘old’ employment, but this will obviously have implications on their rights as employees; if they were employed for two years prior to redundancy, or if this reemployment will take them to the two years mark, then they will have full employment rights and may be able to claim unfair dismissal when their furlough comes to an end down the line

What happens when the furlough scheme ends?

 There is no clear answer, but this is likely to be considered on a case-by-case basis. Whether the circumstances which initially justified dismissal continue to exist will be particularly important.

 Jobs that require regular training

Whilst employees are able to undertake training whilst on furlough, it could become a significant cost to employers to continue training employees throughout the furlough scheme even if continual training is a mandatory requirement for the role, especially if the intention isn’t for them to then return at the end.

 In addition to potential legal complications, employers also need to consider the large cost implications this could have for them. For example, what if an employee earns more than the monthly cap of £2,500? Will they be expected to pay the rest? Is it a waste of administrative time, after making an employee redundant or dismissing for some other reason, and then completely reversing that process? And while the Government are currently paying 80% of the employee wages, this rule is up for review in January, after that the company could be required to contribute to the furlough sums; we saw this occur in September and October.

Something important to further consider is that employees, even re-employed, will continue to accrue holiday and annual leave. This would then have to be paid on termination.

So, there are a few areas with either uncertain answers, or answers that will depend on a case-by-case outlook. . Any area that has this lack of certainty for a company is a risky step to take in any circumstance, never mind when it involves the ever-changing furlough rules.

How we can help

 As an owner-run company, we know the pains of having to wear many hats and how time is precious. As qualified employment and HR lawyers, we know the consequences of getting HR decisions wrong. We work with you to let you focus on what you need to be doing in the business with the peace of mind that all letters and decisions are run past a qualified lawyer before you implement them.

 When you partner with Thrive for outsourced HR support, we can reduce your stress and free you up to work on the business and to make HR decisions with confidence.   

With people at the core of every successful business, keeping on top of the ever-changing legislation and making the most out of your people can be challenging, but we are here to help.

We can also support your business in the event an employee approaches ACAS or the employment tribunal

Get in touch today to invest in your business and make your HR stress free. Email Jodie.hill@thrivelaw.co.uk

Disclaimer

Please note this blog is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action. Please contact us if you have any questions on enquires@thrivelaw.co.uk

 

Post Categories

  • All
  • Black Lives Matter
  • Case Updates
  • Coronavirus
  • Discrimination
  • Employment Law
  • For Employees
  • For Employers
  • Furlough
  • Human Resources
  • Mental Health
  • Monthly FAQ's
  • Pride
  • Protect
  • Redundancy
  • Start Up
  • Students
  • testimonial
  • Thrive In The Media
  • Thrive Life
  • Thrive Thoughts
  • Uncategorised
  • Uncategorized
  • Wellbeing & inclusive workplaces
  • Women Empowerment

Related Articles

The End of Lockdown: The Future of Homeworking and Mental Health.

Published 26th February 2021

Vaccine Passports: A Job Requirement?

Published 25th February 2021

Masks in the Workplace: What are the Rules? What if you’re exempt?

Published 24th February 2021

Guest Blog: Health and Safety Maternity rights during the COVID -19

Published 27th January 2021

Share this Article

<< Previous Article

Subscribe to our Newsletter

loader

#ThriveTribe

We believe that everyone should be enabled to thrive in the workplace and we’ll work with you to understand your business and offer the right solution in terms of employment law and well-being.


Copyright 2020 - Thrive Law. All Rights Reserved JLH Legal Limited (trading as Thrive Law) are solicitors of England and Wales authorised and regulated by the Solicitors Regulation Authority No. 644790. Details of the Solicitors Standards and Regulations can be found at www.sra.org.uk. JLH Legal Limited is a Company registered in England and Wales under Company Number 10737027

Employment Law
Human Resources
Mental Heath
Contact Us
Privacy Policy
Website Terms of Business
Complaints
Manage Your Cookies
Sitemap
0113 869 8101
enquiries@thrivelaw.co.uk

15 Queen Square
Leeds
LS2 8AJ

85 Great Portland Street
First Floor
London
W1W 7LT

Website Designed, Developed & Hosted by Pragmatic Digital

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

Thrive Law
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

Analytics Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!

Cookie Policy

More information about our Cookie Policy