Martin Lewis confirms new furlough redundancy rule – employees assured it’s ‘worth asking’
Martin Lewis has built his career around understanding the ins and outs of financial policy and providing suitable guidance for the nation’s savers. Due to the Money Saving Expert’s prevalence and success rate, he regularly works with and gets insight from various government departments including HMRC and the DWP.
This work with the government has recently yielded answers on certain redundancy issues, as Martin tweeted today: “CONFIRMED: If you’ve been made redundant, you can be rehired and furloughed by your employer if you were employed as of 23 Sept, and on the payroll on or before 30 Oct.
“It won’t work for many, but many be worth asking for some. PLEASE SHARE.”
According to new guidance updated on government’s website yesterday, workers may be eligible to apply for payments from the insolvency service if they were furloughed and then made redundant because their employer is now insolvent.
It will not be possible to apply to the insolvency service if a worker has been dismissed then re-employed under the furlough scheme.
READ MORE: Furlough: Know your employment and redundancy rights as tribunals rise
When introducing the law, Business Secretary Alok Sharma urged companies to avoid redundancies wherever possible.
He detailed: “The government is doing everything it can to protect people’s incomes through our Coronavirus Job Retention Scheme, which is now supporting over nine million jobs across the UK.
“We urge employers to do everything they can to avoid making redundancies, but where this is unavoidable it is important that employees receive the payments they are rightly entitled to.
“New laws coming into force today will ensure furloughed workers are not short-changed if they are ever made redundant – providing some reassurance for workers and their families during this challenging time.”
Under the current extension, employers will be able to continue to use the Job Retention Scheme for an additional month.
This includes small, large, charitable or non-profit employers.
Companies will also have the flexibility to bring furlough staff back to work on a part time basis or furlough them full-time.
Employers will still need to cover National Insurance and pension contributions and the Job Support Scheme, which was set to replace the furlough scheme, has been postponed.
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