Employer ending furlough scheme

calavera86

Hello all, 

So my work is temporary and I originally had a contract until August when coronavirus happened and we were all made redundant. This was before the furlough scheme was announced. 

After it was announced they rehired us and put us on the scheme and told us that they would extend our contracts and furlough us as long as the scheme existed. 

Recently the government announced that from August employers would have to contribute towards furlough and now my employers have said that furlough would end at the end of July and we will be unemployed again. Are they allowed to do this? I thought the point of the scheme was to take back staff when possible? 

[Deleted User]

Yes they are allowed to do this, there is no requirement for companies to furlough, nor is there a right to be furloughed. As it will cost them and they believe that they are unable to afford that cost people will lose their employment. 

sharpe106

To take back staff where possible yes it obviously is no longer possible.

Mrsn

They were quiet generous to rehire you at that point when they had let you go originally (many many employers would not even entertain the idea). Furlough was and always will be discretionary by the employer.

I would say that given the fact the scheme will be costing them money from that point and you’re original contract would have ended at that point anyway they are not doing anything wrong. This will affect all of those in the same situation as yourself, you will need to look at applying for benefits if you will struggle financially from that point.

Thrugelmir

From the 1st August. Employers will need to fund part of the cost. With no income, your employer doesn't have the funds with which to keep everybody on board. 

Semple

In theory they shouldn't have taken you back in the first place if there was no intention of there being a role at the end. They've done a good thing for you by furloughing you. 

Dr_Crypto

They’ve done you a favour. Try to part on good terms as if things pick up for them they might have you back and they seem decent people. 

Galloglass

The problem with accepting what the media tells you about the HMRC, is that the HMRC don't pay any attention and work to their own rules. Anyone (it should be everyone) that deals with HMRC know they have powers to get back what they [think] they are owed. And then some [penalties]

https://www.gov.uk/government/consultations/draft-legislation-taxation-of-coronavirus-covid-19-support-payments
Slipped into a page on the Gov site, is this innocent wall of text. Read the bit that says

It will also give HM Revenue and Customs (HMRC) powers to recover payments to which recipients were not entitled to under the Self-Employment Income Support Scheme or the Coronavirus Job Retention Scheme payment or where a Coronavirus Job Retention Scheme payment has not been used to pay employees, make pensions contributions, pay PAYE or National Insurance contributions. HMRC will be able to do this by raising Income Tax assessments or requiring taxpayers to submit a Self Assessment tax return.

HMRC will also be able to charge a penalty in cases of deliberate non-compliance. Further provisions may be included in the final new clause and schedule when tabled.

So if your employer has been accessing the CJRS without checking the rules, they can be made to pay it back twice.

If you are going to ask your employer to use the scheme again, it would only be reasonable to point out what the HMRC are planning to do if they get it wrong.

A little light reading
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/888810/Taxation_of_coronavirus_support_payments_-_draft_new_clause.pdf