Furlough and multiple occupations

Tuesday 7 April 2020

All employers are now familiar with furlough and the Government’s Job Retention Scheme which offers UK employers grants from HMRC to cover 80% (up to a maximum of £2,500 per worker per month) of the wages of staff who are on the payroll but not working because of the COVID-19 outbreak.

Employees placed on furlough leave by their employer are not allowed to work for that employer during this time. However, this is the age of the ‘gig’ economy in which it is common for employees to have more than one job. This throws up some interesting questions.

Can I furlough an employee who has another job?

Yes.

The Government guidance has made it clear that an employee can be furloughed by one employer but continue to work for another. The employee can even be furloughed by both employers. The Scheme will reimburse each employer 80% of the employee’s salary up to the £2,500 cap for each job.

Can an employee get another job whilst on furlough?

Initially, guidance from the Government was less than clear, but HMRC guidance issued on 4 April now confirms that an employee on furlough is free to take up an additional job.

However, both employers and employees should remember that during a period of furlough the employee’s contract of employment remains in force. Therefore any enforceable restrictions on working elsewhere during their employment will continue to apply. For example, it’s quite common for contracts to stipulate that an employee won’t work for a rival. Employers have every right to remind employees of this.

Can furloughed employees do volunteer work?

Yes, the guidance has clarified this point. But the volunteering must not be for the employer who has initiated furlough and must not be used to circumvent the Job Retention Scheme.

A furloughed employee can take part in voluntary work or training so long as they do not provided services to their employer or generate any revenue for their employer as a result of the voluntary work.

It is also important to remember that if an employee is required to complete training whilst they are furloughed the employer must pay them at least the National Minimum Wage or the National Living Wage for the time they spend training even if this is more than the 80% which is subsidised by the Scheme.

If you have any questions about what furloughed employees can do, please email or call our Employment Law team today on 0113 207 0000.