Bim Afolami MP - PPS Department for Work and Pensions

2nd April 2020

Dear Bim,

I am getting in touch because I think some urgent clarity is needed on the situation for workers who were due to start new jobs and are being treated inconsistently under the new rules for furloughing employees. This has come up in daily briefings with the Paymaster General, but we still don’t have any response that addresses the concerns from my constituents. You will be aware, I am sure, that there is also a growing community on Facebook that’s affected and becoming very vocal about the lack of consistency and clarity.

For example, whilst the Government advice pages say: The scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer; ACAS are advising people to try to negotiate with the previous employer if a notice period is not finished, on the basis that’s the safer option if all parties agree; and constituents have been advised in the media by Ministers to approach their previous employer and try to withdraw their resignation; employers are arguing that’s not practical. The reasons they are citing include that someone may have already replaced; or that they cannot be expected to take someone back permanently (as waiving a resignation would legally entail), especially when they don’t want to be there, and yet it’s virtually impossible to put a time limit on things in the current uncertain climate.

Moreover, whilst Penny Mordant MP has assured us that Ministers and the Government consider an accepted job offer to be a legal contract, employers are taking different approaches, perhaps in part because other official advice isn’t as clear as it might be.

For example, this Government advice website very clearly says the following: Any UK employer with a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll on 28 February 2020. You can be on any type of contract, including a zero-hour contract or a temporary contract.

 Whereas here it says something slightly different: Employees hired after 28 February 2020 cannot be furloughed or claimed for in accordance with this scheme.

If, as Ministers have advised, a job offer constitutes being hired, then the latter advice would suggest anyone who accepted a job offer before 28^th February is entitled to ask to be furloughed with their new employer. But the first set of advice suggests being on the pay roll is essential – and you will be aware that this doesn’t tend to happen until someone starts in post or even later. For example, 2 weeks before the end of the month is common for IPSA employees, even if someone started on the 1^st of the month.

This is all creating real problems and confusion. I would therefore urge you to please look again at the details of the scheme so that anyone recently switching jobs, in receipt of a new job offer or who has handed in their notice to start a new job is not unfairly penalised. Employers need to know their responsibilities and employees need certainty about their rights.

I look forward to hearing from you. 

Yours sincerely,