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Employer to contribute 25% towards furlough scheme from august

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Comments

  • Grumpy_chap
    Grumpy_chap Posts: 18,719 Forumite
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    No, you seem to be correct that there is nothing to stop CJRS being used to pay the notice pay.  It seems wrong use of the scheme, but both CAB and our Accountant said it has not been written out of the rules so can be done if the notice is paid over normal pay-periods.  (If the notice is paid upfront then it cannot be claimed from CJRS.)  I just imagine the Government did not think of that when the rules were put together so quickly.
  • sharpe106
    sharpe106 Posts: 3,558 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    No, you seem to be correct that there is nothing to stop CJRS being used to pay the notice pay.  It seems wrong use of the scheme, but both CAB and our Accountant said it has not been written out of the rules so can be done if the notice is paid over normal pay-periods.  (If the notice is paid upfront then it cannot be claimed from CJRS.)  I just imagine the Government did not think of that when the rules were put together so quickly.
    Even if at the time nobody have thought of that they would know now and have not changed it. They have changed several other things about the scheme, so they are obviously happy for them to do this, no idea why. 
  • Grumpy_chap
    Grumpy_chap Posts: 18,719 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    They might change it when they make an announcement firming the rules for July onwards...
    We have bought this loophole to the attention of our MP.
  • JamoLew
    JamoLew Posts: 1,800 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    We will be back in full lockdown by then if the idiots cant stick to the rules and insist on flocking  to destinations for a day trip  etc etc
    My patience is running very thin with this element of society who think the rules don't apply to them -- hope they all lose their jobs and end up losing everything because that's what they deserve with the way they are acting.
    I have played by the rules for the last 10 weeks and not sure I could manage another 10 like that
  • Grumpy_chap
    Grumpy_chap Posts: 18,719 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Yes, it's frustrating but you are ignoring the fact that Dominic has to keep going up north as that is where the forest of magic money trees are.  Who else will do the fruit picking?
  • sharpe106
    sharpe106 Posts: 3,558 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 24 May 2020 at 2:47PM
    Yes, it's frustrating but you are ignoring the fact that Dominic has to keep going up north as that is where the forest of magic money trees are.  Who else will do the fruit picking?
    All the foreign seasonal farm workers that can come over without having to be quarantined as apparently they don't transmit it. 
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    JamoLew said:
    We will be back in full lockdown by then if the idiots cant stick to the rules and insist on flocking  to destinations for a day trip  etc etc
    My patience is running very thin with this element of society who think the rules don't apply to them -- hope they all lose their jobs and end up losing everything because that's what they deserve with the way they are acting.
    I have played by the rules for the last 10 weeks and not sure I could manage another 10 like that
    You are aware there is absolutely nothing stopping people in England going to the beach for a day trip, yes?
  • Jeremy535897
    Jeremy535897 Posts: 10,751 Forumite
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    calcotti said:
    Yes, but what employers are saying is that the notice payment is not redundancy payment.

    Say you have been at a company for 5 years and you are aged 40.  You will get redundancy pay of 5 weeks' pay capped at £538 per week.  This is not taxed.

    You will also get 5 weeks' notice.  This is taxed.  What employers are doing is using the 80% furlough to cover the bulk of the notice pay.  This seems wrong and not what the CJRS is for.
    I hadn't thought of the notice period and there doesn't appear to be anything to exclude an employer using CJRS for that.
    Normally employers and employees tend to part company before notice is up, hence PILONs. There will now be no use for them, because they no longer save tax, and may not qualify for CJRS, and the employee is on furlough anyway. So the logical approach now is to keep the employee on, furloughed, until the notice period expires. Not really within the spirit of CJRS, but the government actively supports similar behaviour by encouraging ex-employers who almost certainly have no job for their ex-employees to rehire those ex-employees and furlough them.
  • JamoLew
    JamoLew Posts: 1,800 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    JamoLew said:
    We will be back in full lockdown by then if the idiots cant stick to the rules and insist on flocking  to destinations for a day trip  etc etc
    My patience is running very thin with this element of society who think the rules don't apply to them -- hope they all lose their jobs and end up losing everything because that's what they deserve with the way they are acting.
    I have played by the rules for the last 10 weeks and not sure I could manage another 10 like that
    You are aware there is absolutely nothing stopping people in England going to the beach for a day trip, yes?
    yes i am aware. I am fine with people going out etc but they still need to observe social distancing not meeting up with family and friends and having a picnic together or all crowding together in the same space
  • bradders1983
    bradders1983 Posts: 5,684 Forumite
    1,000 Posts Third Anniversary Name Dropper
    JamoLew said:
    JamoLew said:
    We will be back in full lockdown by then if the idiots cant stick to the rules and insist on flocking  to destinations for a day trip  etc etc
    My patience is running very thin with this element of society who think the rules don't apply to them -- hope they all lose their jobs and end up losing everything because that's what they deserve with the way they are acting.
    I have played by the rules for the last 10 weeks and not sure I could manage another 10 like that
    You are aware there is absolutely nothing stopping people in England going to the beach for a day trip, yes?
    yes i am aware. I am fine with people going out etc but they still need to observe social distancing not meeting up with family and friends and having a picnic together or all crowding together in the same space
    Well thats not what your original rant said, was it?
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