Redundancy/furlough?

k4renf

I've been put on notice of risk of redundancy. Can I ask my employer to furlough me for say 3 months then make me redundant?

Grumpy_chap

Yes, you can ask.  They do not have to agree.

I understand that the employer can use furlough funding towards the notice pay (but not the redundancy pay), so it will cost the employer to do as you suggest.  I do not agree that this is the fair use of the furlough funding but it seems to be permitted in the rules.

You may be lucky and your employer may not know that is as option, or may agree in any case.  Asking for three months is unlikely, as after end July the employer has to start picking up some of the furlough tab.

If this is agreed to, be careful to ensure that the redundancy pay and notice pay will not be calculated on 80% rather than 100% salary.

Whatever they say, you are still entitle to normal process, consultation etc.

sharpe106

Unlikely they will put you on furlough as come next month it will start costing them. A lot of companies will be making redundancies around now as the government will pay part of the notice period. 

daveyjp

Furlough is to pay for staff expected to return to work.

Keeping staff on to max out furlough and then making them immediately redundant opens up the company to HMRC investigation.

k4renf

Thank you so much for your replies. Trying to get a more positive outcome here, at least if I could counter-offer a compromise...What if they agree to put me on furlough and then i agree on say 1st August, before it costs them, to resign - no redundancy involved - would that be viable?

sharpe106

daveyjp said:

Furlough is to pay for staff expected to return to work.

Keeping staff on to max out furlough and then making them immediately redundant opens up the company to HMRC investigation.

If it was any other scheme then yes but the government has pretty much said it is fine. 

sharpe106

k4renf said:

Thank you so much for your replies. Trying to get a more positive outcome here, at least if I could counter-offer a compromise...What if they agree to put me on furlough and then i agree on say 1st August, before it costs them, to resign - no redundancy involved - would that be viable?

You could ask them but then if you resign you lose any redundancy pay, how long have you worked for them for?

k4renf

Less than 2 years...

Grumpy_chap

Unless your contract stipulates more than statutory, you don't have much to lose by asking.

If you trip over the 2 year anniversary during the furlough period, the company are very unlikely to agree.

k4renf

Ok, I'll give it a go! Thank you everyone for your comments, very much appreciated 😊

JReacher1

daveyjp said:

Furlough is to pay for staff expected to return to work.

Keeping staff on to max out furlough and then making them immediately redundant opens up the company to HMRC investigation.

This isn’t correct. 

There are no rules that say if made redundant when in or after furlough that you will be in Investigated by the HMRC. It’s not against any rules to do this.