Paying furlough to people with covid

Jaco70

I run a small business with employees. We used the furlough scheme for a few weeks back in April 2020, very successfully. I am anticipating losing workers to covid, as cases seem much higher, and will have to lose those working together (possibly three at a time). What is to stop me using furlough for the weeks they’re off? 

Diamandis

Short answer, nothing. Are you able to still run the business with the reduced amount of staff?

Jaco70

Yes, I will lose a team that work together. I am careful to keep the teams (I have three) separate in anticipation of somebody testing positive. I’ve lost staff for a few days, and paid them, several times whilst they waited for (negative) covid tests. I’d struggle to pay teams to stay at home for two weeks, as it may well happen more than once.
I used the furlough scheme last year but was completely honest, and kept detailed records, and claimed a relatively small amount compared to many others. We got back to work after about five weeks of shutdown. 

Jeremy535897

See https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme

"If your employee’s health has been affected by coronavirus (COVID-19) or any other conditions

You employee is eligible for the grant and can be furloughed, if they are:

• unable to work because they are clinically extremely vulnerable, or at the highest risk of severe illness from coronavirus and following public health guidance

• unable to work because they have caring responsibilities resulting from coronavirus (COVID-19), including employees that need to look after children

If your employee is self-isolating or on sick leave

If your employee is on sick leave or self-isolating as a result of coronavirus, they may be able to get Statutory Sick Pay (SSP). The Coronavirus Job Retention Scheme is not intended for short-term absences from work due to sickness.

Short term illness/self-isolation should not be a consideration in deciding whether to furlough an employee. If, however, employers want to furlough employees for business reasons and they are currently off sick, they are eligible to do so, as with other employees. In these cases, the employee should no longer receive sick pay and would be classified as a furloughed employee.

Employers can furlough employees who are clinically extremely vulnerable or at the highest risk of severe illness from coronavirus. It is up to employers to decide whether to furlough these employees. An employer does not need to be facing a wider reduction in demand or be closed to be eligible to claim for these employees.

You can claim back from both the Coronavirus Job Retention Scheme and the SSP rebate scheme for the same employee but not for the same period of time. When an employee is on furlough, you can only reclaim expenditure through the Coronavirus Job Retention Scheme, and not the SSP rebate scheme. If a non-furloughed employee becomes ill due to coronavirus, needs to self-isolate or shield, then you might qualify for the SSP rebate scheme, where you can claim up to two weeks of SSP per employee.

If your employee becomes sick while furloughed

Furloughed employees retain their statutory rights, including their right to SSP. This means that furloughed employees who become ill, due to Coronavirus or any other cause, must be paid at least SSP. Subject to eligibility this includes those self-isolating or clinically extremely because of Coronavirus. It is up to employers to decide whether to move these employees onto SSP or to keep them on furlough, at their furloughed rate.

If a furloughed employee who becomes sick is moved onto SSP, employers can no longer claim for the furloughed salary. Employers are required to pay SSP themselves, although may qualify for a rebate for up to two weeks of SSP if the sickness is related to coronavirus.

If employers keep the sick furloughed employee on the furloughed rate for the period that they are sick, they remain eligible to claim for these costs through the furloughed scheme."

Grumpy_chap

The way I interpret the guidance (https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme) is that you cannot furlough the individual that tested positive (sick-pay) but can furlough the other two members of the same team if that is required for business reasons.

Jaco70

Grumpy_chap said:

The way I interpret the guidance (https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme) is that you cannot furlough the individual that tested positive (sick-pay) but can furlough the other two members of the same team if that is required for business reasons.

Ok thank you. I was under the impression that I couldn’t furlough anyone, but if that is the case, it is quite affordable. I would obviously pay the one who tested positive out of my own pocket, then everyone should be happy. Thanks again.