Government Update RE Furlough Leave

• An employee is permitted to undertake employment with a different employer while on furlough leave;

• Employees can be furloughed multiple times i.e. brought back to work and then furloughed again;

• Company Directors can be furloughed, and can undertake their statutory duties while on furlough leave;

• The 80% does not include non-monetary benefits such as car allowances and health insurance;

While the Guidance has introduced a new measure that:

• Employers must confirm furlough leave in writing to each furloughed employee and must retain a record of the letter/agreement for a period of five years;

Employment lawyers up and down the Country (myself included) were wrestling with whether it was permissible for an employee to undertake a second job while on furlough leave. While the previous Guidance did not expressly state that an employee could not undertake other employment while on furlough leave; there was plenty of debate over whether it was “fair or right” that an employee could benefit from having 80% of their wages funded by the Government, and receive a second income. This point has now been clarified, perhaps with a view to filling the corona-related vacancies such as delivery drivers, but it does mean that certain employees will be paid 80% of their monthly income from their original employer, and 100% of a new salary which arguably elevates them to a more lucrative position than their colleagues who remain at work. Some contracts of employment will expressly prohibit an employee working for another employer, but it will of course be open to employers to waive any such provisions if they wish. So employees should check this point with their employer prior to undertaking a second job.

The other points of clarification were as most of us had anticipated, but the new requirement to record the arrangement in writing might catch employers out. If you require assistance with either a letter or agreement, please do contact James Twine at jtwine@wolferstans.com