When bringing an end to an employee’s employment you’re unlikely to be able to rely on furlough pay or support. Here’s our summary of HMRC’s position on termination payments and support under the Coronavirus Job Retention Scheme (CJRS):
Notice pay – since December 2020 HMRC have confirmed that when an employee is serving notice, their notice pay will not be covered by the CJRS.
Payments in lieu of notice – if you end the employee’s employment with a lump sum notice payment then you are not entitled to recover that payment from the CJRS.
Statutory redundancy payments – it is clear that the CJRS cannot be used to fund statutory redundancy payments.
Ex gratia payments – payments that you’re choosing to make without any contractual requirement to do so, and that aren’t in return for work done, cannot be claimed through the CJRS.
Lump sum payment in lieu of holiday – if an employee has unused accrued holiday entitlement when their employment comes to an end, this cannot be claimed through the CJRS.
There are complicated rules around amounts which should be paid to employees on termination – always take advice.