Returning from Furlough

A number of employers are now planning to start trading again which will involve getting at least some of their staff back to work.  As part of this process the employer will have to change their employees’ employment status back from furlough to their previous status.

If you are reverting employees back to their ‘pre furlough’ status, then notifying them of this and supplying them with a formal letter should be sufficient. The following example letter has been taken from the ACAS website: –

Furlough return letter

The letter that you issued to staff informing them they were going to be furloughed should have stated that, as their employer, you can end the furlough period.  The employee does not therefore have the right to remain as a furloughed employee.

If you are looking to amend an employee’s status, such as reducing their working hours, then normal employment law will apply with consultation with the affected employee required. We would recommend that you seek employment law advice regarding changing any employee’s status

Note that the HMRC guidance requires you to keep the necessary paperwork for all furloughed employees for 6 years.  This includes:

• Copies of letters to employees informing them that they are to be furloughed
• Copies of the Coronavirus Job Retention Scheme claim/s and calculation/s
• The claim reference number/s
• Evidence that business has paid the employees
• Evidence that you advised your employees that you made a claim/claims via the Coronavirus Job Retention Scheme and that they did not need to take any further action
• Copies of any other correspondence
• Copies of letter to employees informing them they are being un-furloughed

HMRC will be performing detailed checks regarding the amounts claimed in due course.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Mick Haupt on Unsplash