Furlough loopholes?

Rudess

My company last week decided that me and several others will be made redundant (Even though that just several days before that he said the company is safe with enough money in the bank and nobody needs to worry). 
After I wrote to the CEO, he agreed with my suggestion to put the employees on furlough, even though it's clear that they will make us redundant the moment the furlough scheme ends. 
I have today received the official letter from HR notifying me on the furlough and was told that i have 24 hours to sign it. However there are potential loopholes which my employer could potentially exploit. As I haven't seen any furlough letters I don't know if it's standard:

Your period of furlough leave will end when any of the following events occur:  1. You or we cease to be eligible for funding under the Coronavirus Job Retention Scheme;
2. We give you one week's notice that your employment will resume on the terms and conditions which applied immediately before furlough leave; or 3.Your employment is terminated for any reason.

The first sub-clause makes sense, however not the 2nd and 3rd. What stops them technically to wait 3 weeks into the furlough and to give a one week's notice that my employment will resume, and then as it resumes on same day to make me redundant? Looks like it could be potentially exploited by employer if they wish.  Regarding termination for any reason, again this could be used not in good faith by employer.

Is this standard language in furlough letters? does anyone else have a similar experience? Any advice is welcome

calcotti

It seems entirely reasonable that they can end your furlough if they choose and/or make you redundant. In the meantime you will be getting paid whereas if they make you redundant now you will not.

sharpe106

They are going to make you redundant anyway? So 2 and 3 makes no real difference to you anyway.

Rudess

sharpe106 said:

They are going to make you redundant anyway? So 2 and 3 makes no real difference to you anyway.

Well it could make a difference if I'm on furlough for next 2 months or if i'm just for a month, it's £2500 difference.

Rudess

calcotti said:

It seems entirely reasonable that they can end your furlough if they choose and/or make you redundant. In the meantime you will be getting paid whereas if they make you redundant now you will not.

If they made me redundant, they still need to pay me the notice period payment in lieu. The only issue is now of trust, whether they could be trusted to keep me on furlough for these next 2 months, as it will help me in terms of more time to find new job and at no cost for them. Obviously if i find a job in a couple of weeks, I can hand my notice and get out of furlough - I have no intention to be long time on furlough.

sharpe106

What I meant was I don't see what the loophole has to do with anything. If you don't sign they do not claim for you and make you redundant now.

calcotti

sharpe106 said:

What I meant was I don't see what the loophole has to do with anything. If you don't sign they do not claim for you and make you redundant now. 

Exactly what I meant too! OP currently has nothing, has been offered something but would prefer it if they were guaranteed more.

SXX

Have you tried ACAS - see if they can advise?

Rudess

SXX said:

Have you tried ACAS - see if they can advise?

Haven't tried ACAS, I would prefer to sort it with employer ideally as I would want potentially a good reference for next job. 
Does ACAS look at such things? I think they mediate if you make a claim to employment tribunal about money owed?

sliphi

Rudess said:

My company last week decided that me and several others will be made redundant (Even though that just several days before that he said the company is safe with enough money in the bank and nobody needs to worry). 
After I wrote to the CEO, he agreed with my suggestion to put the employees on furlough, even though it's clear that they will make us redundant the moment the furlough scheme ends. 
I have today received the official letter from HR notifying me on the furlough and was told that i have 24 hours to sign it. However there are potential loopholes which my employer could potentially exploit. As I haven't seen any furlough letters I don't know if it's standard:

Your period of furlough leave will end when any of the following events occur:  1. You or we cease to be eligible for funding under the Coronavirus Job Retention Scheme;
2. We give you one week's notice that your employment will resume on the terms and conditions which applied immediately before furlough leave; or 3.Your employment is terminated for any reason.

The first sub-clause makes sense, however not the 2nd and 3rd. What stops them technically to wait 3 weeks into the furlough and to give a one week's notice that my employment will resume, and then as it resumes on same day to make me redundant? Looks like it could be potentially exploited by employer if they wish.  Regarding termination for any reason, again this could be used not in good faith by employer.

Is this standard language in furlough letters? does anyone else have a similar experience? Any advice is welcome

There is no standard letter as such, as the notice employers provide to affected employees  should reflect the agreement already reached between the parties over a (temporary) variation of terms of employment.

But typically, in regards your numbered points:

1. This is not a typical clause.
The government has laid out details of who employers can claim for, and the end date. Indeed, the government has recently extended the original end date from end of May until end of June (and may extend again?)
This was to allow employers and employees to plan accordingly, rather than employers winging it and employees left in the lurch, absorbing the risk and difficulties of a reduced income.
- remember, many furloughed employees have sought alternative temporary employment to supplement their otherwise drop in income.

2. This would be a typical clause, but there should be further clauses to supplement it that:
(a) specifies the minimum time you may be furloughed (3 weeks as a minimum)
(b) specifies the maximum time the agreed variation of terms of employment will apply (extention would need to be by further mutual agreement)

3. A somewhat untypical clause and not sure the purpose of including it.
Under your contract of employment, there will be terms that allow the contract to be ceased by either party.. Once your employment ends, the employer does not pay you anyway (save for any money owed for work carried out prior to termination of employment).
- perhaps it was included in your case as it is the clear intention of your employer (as you acknowledge), and therefore in the forefront of their mind, to make you redundant from the expiry of CJRS.

Semple

That's not a loophole. That choice is completely down to your employer, you're forgetting that furlough as at the discretion of the employer. There's nothing to legally prevent them from having you on furlough for 3 weeks (minimum req) and issuing you a notice to return to work at week 2, so that when you return to work they can start redundancy proceedings. 

Yes it's a bit of a **** move, as furlough will cost them very little, but at the end of the day they can cease your furlough status at anytime they wish.