Parents returning to work after leave will still be eligible for furlough

Wednesday 10 June 2020

As part of the pending changes to the Coronavirus Job Retention Scheme (Scheme), in order to be eligible to be furloughed (either full time or flexibly) from 1 July 2020, an employee must have been furloughed and formed part of a claim to HMRC prior to 30 June 2020.

In practical terms this means today (10 June 2020) is the last day an employee can be furloughed if the employer intends to furlough them in the future.

However, this requirement causes an issue for employees who have been absent from the workplace on parental leave since the Scheme was announced.

As they have not been in the workplace to be furloughed prior to 10 June 2020 they are effectively excluded from the Scheme if they return to work post-30 June 2020 as this is when the Scheme closes to new entrants.

In order to alleviate the situation where by employees would find themselves at a disadvantage by virtue of them having taken parental leave, the government has announced that employees returning to work from maternity, paternity, adoption, shared parental, and parental bereavement leave will be eligible for furlough after the 10 June cut-off date.

The Chancellor has confirmed that details will be included in the updated Scheme guidance that is due to be published on 12 June.

If you have any questions about furloughing, please email or call our Employment Law team today on 0113 207 0000.