Does Redundancy have to be paid back if re-instated as furlough

LotteryBox

Apologies if this has already been asked.
I was made redundant on 17/03/20 due to Covid-19's affect on the business (Travel Agents).  I have received my P45 and final pay.
I have been employed as PAYE with the company for just over 3 years. My employer has said that as soon as this is over & business picks up he will ask me back to work.
If my employer re-instates me as Furlough what happens to the redundancy money I have received? Does this need to be paid back & if so, will it be to my employer or HMRC?
Also, if business has not picked up at the end of the Furlough Scheme I understand he could make me redundant again according to Gov website. I'm assuming that if he reinstates me it would be under a new contract which would put my time served as zero, then redundancy wouldn't be paid twice.

GazNicki

If the employer re-instates you, it will be as per the original contract - not a new one. Your redundancy payment will need to be paid back, and your service with the company will continue as though you never left. Your terms and conditions and contract should remain the same. You would then be paid at least 80% of your wages and return to work as soon as your employer can.

If your employer does not re-instate you, you cannot be taken on in the same role until 6 months have passed. There are rules that must be abided by when making someone redundant. I don't think these have been changed as a result of COVID-19, but the option to re-instate is part of the COVID-19 response. So if your employer doesn't re-instate you, and then advertises your exact job inside of 6 months - there would be penalties under the rules for redundancy. The permission to re-instate would fall under a reasonable alternative solutions.

As to who the money would be owed to is down to who paid the Redundancy Package to you. If it was the employer, then it would be going back to them.

LotteryBox

Thank you GazNicki 
I've just heard from my employer. Unfortunately, he's not going to furlough me as he will still need to contribute to employers national insurance & pension, he says he cannot afford this. Gutted!

Jeremy535897

This is not correct. The guidance is as follows:

"Work out what you can claim

Employers need to make a claim for wage costs through this scheme.

You will receive a grant from HMRC to cover the lower of 80% of an employee’s regular wage or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. Fees, commission and bonuses should not be included.

At a minimum, employers must pay their employee the lower of 80% of their regular wage or £2,500 per month. An employer can also choose to top up an employee’s salary beyond this but is not obliged to under this scheme.

We will issue more guidance on how employers should calculate their claims for Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions, before the scheme becomes live."

The full guidance to employers is at https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

LotteryBox

Thank you Jeremy535897
I've now put this to my employer/HR but my employer still won't be furloughing me as he expects the same outcome (redundancy) after the furlough scheme ends & he would have additional costs accrued ie holiday pay & time served (although this wouldn't affect my redundancy as in 3 months time it still wouldn't take it to the next full year). It is so frustrating.
Thank you for your advice though.