Employer agreed to furlough me but is asking for a rebate of the furlough payment

neweyjo22

Hi, I really don’t know what to do in this situation and I’m trying to help a friend of mine out. 

She left employment to go self employed in March, She hadn’t actually had a chance to get set up or anything before isolation so when the furlough scheme announced that you could be re-employed and claim furlough she contacted her previous ER. They agreed and everything was fine. They didn’t confirm in a letter or anything it was just agreed over the phone. 

Her ER contacted her yesterday to say that when the furlough payment is made via payroll she wants her to pay her back 50% of the amount via bank transfer into her personal account, like what the hell?! 

I really don’t know what to advise her to do in this situation as if she says no shes afraid she won’t pay her any of the furlough money at all and she has a small baby and family to support with zero income at the moment. 

What’s the best thing to do? Is there anywhere I can report this that won’t affect her furlough? 

Thanks 

bradders1983

Sadly the best thing to do here is run a mile.

Gonna-be-debt-free

Well, that seems illegal.  Some combination of extortion, bribery and fraud on her part.  I'm sure someone with clearer understanding will advise, but there is no way on gods green earth that what she is proposing is right, either legally or morally.

bradders1983

neweyjo22 said:

bradders1983 said:

Sadly the best thing to do here is run a mile.

Surely she is breaking the law by asking me to do this?

She is, reporting her means you will likely get nothing. So there is a no win situation for you here whatsoever. 

EssJayD

Report under whistleblowing.

calcotti

neweyjo22 said:.. she has a small baby and family to support with zero income at the moment. 

Has she looked at benefit entitlement?

gary83

Her benefit entitlement would also be lower, as shady employer has declared to HMRC that she’s received £x when actually she’s only managed to keep hold half of £x

if she kept the money and didn’t enter in the scheme of giving 50% back to ex employer the old employer would have no recourse, could hardly begin proceedings for the amount. The only thing they could do is end the furlough and not give your friend another payment.

sharpe106

EssJayD said:

Report under whistleblowing.

Keep the money as they are entitled to it and if they try to get the money, report them to the police. It has nothing to do with the scheme as she is wanting it in her personal account not paid back to the company, So I doubt reporting it on whistleblowing will help, as that is more for false claims.

EssJayD

Oh make the right "hmm" noises but keep the money without a shadow of a doubt.   Whistleblowing does apply here as its fraud and is regarding an issue that is in the publics interest (misuse of HMRC funds and misuse of the scheme), the suggestion of it to ex employer might be enough to stop any further calls.  

Same as going to the police really but more likely to put the brakes on any harassment over it IMO.

gettingtheresometime

Whilst I agree that I too would make the right noises and then not make the payment, bare in mind this will only work for one payment.

perhaps what she could do is make the right noises, not make the back hander and then contact HMRC to either whistleblow & / inform them that she no longer wants to be considered as being furloughed. Could she that way claim benefits?

given there are noises already coming out that the scheme isn't sustainable so a plan B might be an idea to have in place

neweyjo22

She isn’t entitled to any benefits due to her household income amount. 

What the previous ER has said is to repay the 50% at the end of the 3 months or however long furlough is going to last before she can get back into work so what I said was accept the payments and then simply don’t pay her. 

Not like she can take her to court to get the money as she isn’t owed it anyway! 

Is there anywhere that I can ‘blow the whistle’ on this ER without it affecting her furlough payments as if she is the only one that’s been asked to do this it will be obvious it’s her that’s told someone and I don’t want her to get into bother.