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No Furlough pay

I'm asking for a friend who has had to survive on savings for nearly 3 months. He left his previous job on 28th February 2020 for a new job. He signed a contract on the 5th March to start on the 20th March but the business closed for Lockdown on the 19th March. Previous employer said they couldn't re-employ him and my understanding the new employer said they couldn't do anything either and had no further contact or confirmation of new job. Surely this can't be right, any advice is much appreciated as I hate seeing him struggle to support his wife and two infant children.

Comments

  • sharpe106
    sharpe106 Posts: 3,558 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The new company can't furlough him and his old company does not have to re-employ him. What contract did he sign with his new company? just because they shut down does not mean they don't have to pay him. His contract still stands. Although granted they can make him redundant at little cost to them. Has he looked to see what benefits he might be entitled to? 
  • poppy12345
    poppy12345 Posts: 18,973 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It's correct. His previous employer would have had to re-employ him to furlough him. The new employer can't furlough him because he hadn't even started working and he wouldn't be eligible for furlough with that employer.
    He can look at claiming Universal Credit. Savings of £16,000 and over will exclude him. He should use a benefits calculator ro check entitlement.
    A claim for UC will end any tax credits he may already be claiming. Council tax reduction can be claimed from his local council.
  • penners324
    penners324 Posts: 3,661 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Their best bet is to get the old form to furlough him but they can't be made to do this.
  • sharpe106
    sharpe106 Posts: 3,558 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Their best bet is to get the old form to furlough him but they can't be made to do this.
    They have already said that they won't. 
  • Galloglass
    Galloglass Posts: 1,288 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    He signed a contract on the 5th March
    Signed contracts are valid so if they provide for a salary, the monies should have been paid. Get the contract out and call ACAS for advice on 0300 123 1100 
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