Furlough payments for agency workers

Mazza72380

Hi, I am new to the forum so hope I have posted correctly. My partner is an agency worker and has has constant work since the start of his employment with them. He is on a zero hour contract but has never not had work. He has been assigned to a university since starting with the agency until April when lockdown came
into force and has been furloughed ever since. 

Two weeks ago, the agency emailed hIm stating They were no longer in a position to pay him furlough so would be receiving his final payment in July. Confused as the situation remains as it was during the months he has received furlough I realised it was because they would now
have to start paying a small
percentage towards his furlough payments along with his pension contributions and national insurance. So, to evade themselves any expense, they are now trying to stop the payments. I contacted the HMRC who advised me
that this was not legal. They either have to pay it or they have to make him Redundant. Neither or which they are willing to do. They are stating his contact says they don’t have to offer him work and therefore don’t have to pay him but this has been the situation from the start and they were happy for the government to cover his furlough payments. They have also done the same to two other employees. Please can someone help as I am unable to get hold of the HMRC at present for further advice. 

poppy12345

It's entirely up to the employer whether they choose to furlough and they don't have to do this. he was furloughed and now they've decided they can no longer do this, i don't see anything ilegal about it.

Mazza72380

Thanks poppy but that isn’t what the HMRC has stated. If he was accepted into the furlough program they have said that the employer cannot just choose to stop the payments however if they cannot afford to top up the payments as now required then they ultimately have to make that employee redundant altogether. 

poppy12345

HMRC are not correct here. It's entirely down to the employer whether they choose to continue to furlough and once it starts costing them more, it's very likely that a lot of employers won't continue with the furlough.

gary83

Mazza72380 said:

Thanks poppy but that isn’t what the HMRC has stated. If he was accepted into the furlough program they have said that the employer cannot just choose to stop the payments however if they cannot afford to top up the payments as now required then they ultimately have to make that employee redundant altogether. 

It’s probably not a coincidence that his period of furlough comes to an end at the end of July - the same time the cost of furloughed staff increases to employers.

 HMRC are entirely incorrect, once furloughed the company then has absolutely no obligation to continue furloughing the staff member until the scheme ends. Apart from anything else the scheme has already been extended until the end of October, companies didn’t know it was going to last that long when they originally furloughed staff.

poppy12345

It won't be the first time i've heard HMRC give incorrect advice.. they're not really the best people to ask for advice.

sharpe106

Actually HMRC are partly correct. The original contract still stands. Which is generally pay an employee or make them redundant, some contracts have lay off. People on zero hour contracts can be made redundant, if they get any payment for that would depend how long they have worked for the company for. 

unholyangel

HMRC don't (or at least shouldn't) be giving legal advice on anything, much less employment law when their area is taxation. 

I suspect there might be a crossed wire - with hmrc thinking the employer is still claiming CJRS but not passing it on to the employee. 

But in any event, unfortunately the employers decision. And I don't think the agency can be thought off too harshly here - this would have been at a cost to them already (minimal compared to what they'd have to start contributing, but still) and as he didn't have any guaranteed hours, they could have just left him high & dry - as many agencies did to their workforces.

SXX

My agency has informed me that I will be taken off furlough from 1 August as they cannot afford to make any employer contributions from Aug - Oct - ie till the end of the scheme.