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Does a whole company have to close before any workers can be furloghed?

My wife has been told the whole company has to close before any workers can be furloughed.  I disagree as the government advice says that the furloughed workers have to be identified.  Has anyone found any info about this? I did search the threads but could not find anything at the ones i looked at. 

Comments

  • dwsjarcmcd
    dwsjarcmcd Posts: 1,857 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Not true, I've just been put under a furlough clause (on full pay) but 45% of the staff are continuing to work, the other 55% are like me, have been put on furlough.
  • HornetSaver
    HornetSaver Posts: 3,732 Forumite
    1,000 Posts Fourth Anniversary Name Dropper Combo Breaker
    I would be surprised if the entire business has to close before furlough. In practise though I can appreciate an employer's position. Imagine telling some employees that they have to work for their normal pay - in the knowledge that even with social distancing, working does increase their contact with other households - and some with identical jobs are staying at home for 80-100% pay. The current way the furlough system has been introduced does not appear to give employers the option to do what would seem reasonable in the circumstances - rotate this every few weeks.
    It is however worth noting, and I'm sorry to be the one breaking this, but no worker has the right to be furloughed. Furlough exists for the benefit of employers, and whilst the measures it involves are very generous to the worker, this is an incidental to furlough's purpose; to retain skilled employees within a business that was viable and will again be viable in normal circumstances.
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 24 March 2020 at 11:46AM
    No. If a business needs to reduce staff to reduce it can designate some staff as furloughed staff and will be eligible for support to continue paying their wages. The important thing is that furloughed staff must do no work for the employer. Reduced hours of work are therefore not covered by the scheme.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • I am a pregnant Pharmacist working in community pharmacy. I am classed as "high risk" on the government guidelines, yet my employer states I have to come to work or go off sick which would on entitle me to statutory sick pay. I can not survive on £92 a week. My stress/anxiety levels are through the roof at the moment & I feel as though I am getting pushed back into work. I mentioned to him about the government 80% reimbursement scheme. However he said that is only for struggling businesses or places having to shut down. Does anyone have any further information or loop holes around this? 
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 24 March 2020 at 11:52AM
    https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees
    “If your employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of your wage, to avoid redundancies.”

    This is not a general business support scheme. If your employer is business as usual financially I think they are right. Unfortunately if you need to protect your health by being away from work your employer has no obligation to pay you.
    You can look at Universal Credit https://www.citizensadvice.org.uk/benefits/universal-credit/

    See also https://www.acas.org.uk/coronavirus
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • timthumb
    timthumb Posts: 27 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Thanks all 
    I take from it the whole company does not have to close down. 

  • mwarby
    mwarby Posts: 2,060 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    katie1492 said:
    I am a pregnant Pharmacist working in community pharmacy. I am classed as "high risk" on the government guidelines, yet my employer states I have to come to work or go off sick which would on entitle me to statutory sick pay. I can not survive on £92 a week. My stress/anxiety levels are through the roof at the moment & I feel as though I am getting pushed back into work. I mentioned to him about the government 80% reimbursement scheme. However he said that is only for struggling businesses or places having to shut down. Does anyone have any further information or loop holes around this? 
    Is there anything short of you going off work that your employer could do to reduce your stress\anxiety ? It sounds like your skills would be useful during this outbreak, so it would be in your employers and wider communities interest to keep you able to work.

    A few examples
    - could your front of house work be cut back
    - could the store layout be reasonably changed to allow for greater distancing eg having waiting area a little further away
    - more breaks\reduced hours
  • Hi,
    Myself and a few colleagues work for a small taxi/minibus operator taking children to school we are now obviously sidelined , i cant really rely on the operator to find out what we may be entitled to but my understanding is that we could expect 80% of the pay we paid PAYE on in February .. but i cant find this written down anywhere... does anyone know ?
  • mwarby
    mwarby Posts: 2,060 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hi,
    Myself and a few colleagues work for a small taxi/minibus operator taking children to school we are now obviously sidelined , i cant really rely on the operator to find out what we may be entitled to but my understanding is that we could expect 80% of the pay we paid PAYE on in February .. but i cant find this written down anywhere... does anyone know ?
    It's quite likey that you could be forloughed (ie be laid off temporarily due to lack of work). But this would mean no work, you wouldn't be able to get this, and also try and get hires
  • We wouldn't get the opportunity for hires , he needs staff for school runs but does all hires himself. By any chance have you heard of the February PAYE figures being used for the the calculation ?
    Thanks for your help mwarby !


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