Bosses warned to stick to furlough rules

Employers in the North East are being warned to make sure they stick to the rules over furloughing staff – or risk being ineligible for the payments it offers.

The HMRC portal through which claims can be registered for the scheme is due to open on Friday, April 20, with the first payment expected to be made to businesses by the end of the month.

The scheme allows for furloughed staff to be called back into their workplace if there are urgent tasks and to then be ‘re-furloughed’ afterwards.

But, with any furlough period having to last a minimum of three consecutive weeks to qualify for a grant, any employers who call people back in before that period is up will not be eligible to receive payments and liable for meeting their staffing costs as they usually are.

Sarah Hall, partner in the specialist employment team at Newcastle-based Hay & Kilner Law Firm, said: “The government’s coronavirus job retention scheme has been a lifeline for many businesses but there are clear rules to follow.

“The start of the new financial year might, for example, create an urgent need for accounts department staff to carry out related tasks, but if they’ve been furloughed and then undertake any work before their three weeks are up, employer won’t be able to make a grant claim for the 80% of their pay.

“It is also essential that directors with statutory obligations take full advice as to what they can and can’t do if furloughed.”

She added: “It won’t matter whether the employer broke the rules knowingly or not.”