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Due to an update to the Coronavirus Job Retention Scheme guidance last Friday, there has been some concern this week that employers who have employees who are working their notice periods whilst on furlough leave, can only recover reimbursement from HM Revenue & Customs for the statutory element of the notice period and not for any period of enhanced contractual notice.  HM Revenue & Customs has now updated its guidance to remove any uncertainty.

The guidance now states that ‘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 payment’.

For further guidance please contact Tom Evans or Elizabeth Judson.

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