What You Need To Know About Your Furlough & Redundancy Rights

Does anything to do with furlough affect foreign workers’ rights to stay in the UK?

Put simply, no, it shouldn’t. “If you’ve been furloughed, it won’t affect your right to stay in the UK,” agrees the CAB. “For example, if your visa requires you to have a job, then being furloughed doesn’t mean you’ve lost your job. It asks you not to claim money from 'public funds', but the good news is furlough pay isn’t seen as public funds. And, if it requires you to earn a minimum amount, it doesn’t matter if your furlough pay is less than this.”

What happens if your employer tries to make you work on furlough?

If your employer furloughed you, then they shouldn’t ask you to work during any hours you’re furloughed – including any voluntary work. Just bear in mind they can legally ask you to do certain types of training to improve your skills in the meantime, but only as long as it doesn’t make money or provide services for them.

“Your employer could be committing a criminal offence if they ask you to work during any hours you’re furloughed,” argues the CAB. “You could complain to your employer – tell them it’s against the rules of the Coronavirus Job Retention Scheme. It’s a good idea to complain in writing, for example by text or email – as this means you’ll have evidence if you need it. If your employer still asks you to work, you could also report them to HM Revenue and Customs (HMRC). You don’t have to give your personal details when you report your employer. You can do so here – just choose the option to ‘Report tax fraud online’.”

Alternatively, if you’re worried about what could happen to you if you report your employer, you can get further advice from Protect, a charity that helps whistle-blowers, or the CAB.

Are you within your rights to accept another job during furlough?

While it’s not right that your current employer asks you to work during furlough, there’s actually nothing that precludes you from taking on work elsewhere, as long as your contract allows for it (i.e. it’s not competitive). “Getting a new job won’t affect your furlough pay,” says the CAB. “If you get a new job, you should make sure you can go back to work for the employer who furloughed you when they decide to bring you back and that your new employer gives you the HM Revenue and Customs (HMRC) starter checklist form to fill out.”

What happens if your employer doesn’t let you take paid holiday while on furlough?

Brace yourself – your employer doesn’t have to let you take paid holiday if they have a good reason, says the CAB. “For example, they might not be able to afford it, because the law says they have to pay you 100% of your pay when you take holiday. If you can’t take all your paid holiday because of coronavirus, you can carry over up to four weeks of holiday into the next year – you’ll have two years to use it.” It doesn’t matter what your job is, either – whether you’re a key worker or not, everyone can carry over their holiday and while you’re furloughed, you can still build up your paid holiday. It should be the case you can arrange with your employer when to take it, as you usually would.

Can your employer make other changes to your contract while you’re on furlough?

At the time you’re furloughed, you need to agree to the change in your contract with your employer, in writing or in person. But be warned – they might try to change something else in your contract at the same time such as statutory hours, holiday entitlement, your job remit or maternity or paternity rights. “If you’re not happy with the other changes, ask your employer if you can refuse them and still be furloughed,” advises the CAB. “You can check what to do if your employer tries to change something in your contract here.”

If your employer eventually decides to make you redundant, what are your rights?

Regardless of the situation we find ourselves in, your company must still follow a strict redundancy process for it to be legal, and it’s encouraging to know your statutory rights have not changed as a result of the coronavirus crisis. Among those is the right to a consultation with your employer, which involves speaking to them about why you’re being laid off and whether there’s anything else they could do first. 

There was also a new law brought in recently to ensure all furloughed employees receive their full redundancy pay based on your normal salary, as opposed to the furloughed amount. Employees with more than two years’ continuous service who are made redundant are usually entitled to a statutory redundancy payment that is based on length of service, age and pay, up to a statutory maximum. You can read more about the new law here.

“Your employer will take you off the furlough scheme when you start your notice period,” adds the CAB. “They'll still have to pay you any money you're owed and follow the right process. They can’t discriminate against you.” Finally, remember to check whether you’re entitled to pay during your notice period; pay for holiday time you haven’t taken or any extra money for your redundancy.

If you refuse to be furloughed, can your employer make your redundant?

If you refuse to be furloughed, then yes, you could be made redundant, warns the CAB. “If your employer makes you redundant, they will still have to follow the usual rules to make the redundancy fair. And you might be able to claim benefits, but this will probably give you less money than 80% of your normal pay.”

Is there a way to recover money owed to you if your company goes bust?

According to the government website, it is possible to apply online for redundancy pay and other money you are owed. Just be aware you will need a case reference number (starting CN) to begin your claim, which you can get from the insolvency practitioner dealing with your employer’s insolvency.

Can an employer re-employ and furlough you after making you redundant?

In short, yes. As long as you were made redundant after 23rd September 2020, it is legal for companies to rehire you and immediately put you on furlough until your role becomes relevant to the organisation once more. “You can be furloughed full-time or part-time,” adds the CAB. “For example, you could work three days a week and be furloughed for the other two days. This is known as the flexible furlough scheme.”

 
For more information and support around furlough and redundancy, visit the government website here or CitizensAdvice.org.uk.
 

*DISCLAIMER: Anything written by SheerLuxe is not intended to constitute financial or professional advice. The views expressed in this article reflect the opinions of the individuals, not the company. Always consult with an independent financial advisor or expert before making decisions which may affect your personal finances.