Are Zero Hour Contracts Entitled To Furlough

Paul Gonzalez
• Saturday, 16 January, 2021
• 7 min read

You can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month. For periods from 1 November onwards, you can claim for employees who were employed on 30 October 2021, as long as you have made a PAY Real Time Information (RTI) submission to HMRC between 20 March 2021 and 30 October 2021, notifying a payment of earnings for that employee.

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If the employee’s fixed term contract has not already expired, it can be extended or renewed. You must have made a PAY Real Time Information (RTI) submission to HMRC between 20 March 2021 and 30 October 2021, notifying a payment of earnings for that employee.

If your employee’s fixed term contract expired on or after 23 September 2021, they can be re-employed and claimed for. A new employer is eligible to claim in respect of the employees of a previous business transferred if the TYPE or PAY business succession rules apply to the change in ownership.

Where training is undertaken by furloughed employees during hours which you record your employee as being on furlough, at the request of their employer, they are entitled to be paid at least their appropriate national minimum wage for this time. In most cases, the furlough payment of 80% of an employee’s regular wage, up to the value of £2,500, will provide sufficient monies to cover these training hours.

This includes giving a notice period and consulting staff before a final decision is reached. For claim periods relating to November, you can continue to claim for a furloughed employee who is serving a statutory notice period, however grants cannot be used to substitute redundancy payments.

For claim periods starting on or after 1 December 2020, you cannot claim for any days on or after 1 December 2020 during which the furloughed employee was serving a contractual or statutory notice period for the employer (this includes people serving notice of retirement or resignation). If an employee subsequently starts a contractual or statutory notice period on a day covered by a previously submitted claim, you will need to make an adjustment.

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The Coronavirus Job Retention Scheme is not intended for short-term absences from work due to sickness. Employers can furlough employees who are clinically extremely vulnerable or at the highest risk of severe illness from coronavirus.

An employer does not need to be facing a wider reduction in demand or be closed to be eligible to claim for these employees. This means that furloughed employees who become ill, due to Coronavirus or any other cause, must be paid at least SSP.

You can claim through the scheme for enhanced (earnings related) contractual pay for employees who qualify for either: If your employee decides to end their maternity leave early to enable them to be furloughed (with your agreement), they will need to give you at least 8 weeks’ notice of their return to work, but you can agree to shorter notice in certain circumstances.

It offers you a digital location to record your employee information. And that can help make it easier to apply for government grants.

It’s basically a type of temporary leave for an employee, while paying a part of their wage. Furlough supports businesses facing the effects of the pandemic, helping to prevent large scale unemployment.

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So, the Government offers temporary wage payment assistance. Okay, to clarify that, zero hour employee rights to furlough are the same as the rest of your full and part-time staff.

The coronavirus Job Retention Scheme is another government initiative. It covers your National Insurance and pension contributions of any employees on furlough.

This means the ex-employee must have been notified to HMRC through an RTI submission on or before 28th February 2021. So, you can claim for employee wages if they’re on temporary leave (furlough).

To make use of the Job Retention Scheme, the Government asks that companies must have: Enrolled for PAY online, a process that can take up to 10 days.

With our HR and employment law expertise, we can take you through new regulations during this challenging time: 0800 783 2806. The furlough scheme has helped pay the wages of millions of people who can't work due to the coronavirus pandemic.

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The scheme pays employees placed on leave up to 80% of their salary, up to a maximum of £2,500 a month. Employees are eligible for furlough if they cannot work “due to caring responsibilities resulting from coronavirus”.

Trade union umbrella body TUC says many businesses are not aware of this rule. If 100 or more people are being made redundant, for example, group meetings must start at least 45 days before anyone's job ends.

Letting employers know months in advance that furlough will be extended until the end of April could affect the business decisions they take for 2021. This has increased the pressure for one of the hardest-hit sectors of the economy, where a significant proportion of staff are already on furlough.

The state now puts in the full 80%, with the employer only covering pension and National Insurance contributions. The word “unprecedented” has been in almost constant use during the pandemic to describe the unending wave of new situations and circumstances that we have been confronted by.

The furlough scheme, a new concept in itself, has raised its fair share of hitherto, unheard of circumstances and scenarios. Now, as employers look to save costs by making jobs redundant, probably for the first time, zero -hours and casual workers will have to be included in the process.

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We think the safest approach is to put at risk all employees who fall into the redundancy pool, regardless of their contract type. Equally, if you have just a few or a single zero -hours position that bears no similarity to any jobs that are being made redundant, then you may be able to justify bringing these employees back on their zero hours terms.

The EAT remitted the case back to the Employment Tribunal to decide whether the failure to provide 48 hours of work amounted to an unfair constructive dismissal.” Employers might need to put some or all of their employees on temporary leave (' furlough ') during the coronavirus (COVID-19) pandemic.

An employer cannot claim for hours worked through HMRC's Coronavirus Job Retention Scheme. The money saving expert has shared a video for those concerned about their financial future (Picture: PA)Money saving expert Martin Lewis has called on bosses to see it as their duty to pay their zero hour contract workers at least 80% of their wage through the Employee Furlough Scheme.

He has also released advice in a new video to those on the controversial contracts which lays out how their actual salary will be calculated given they work variable hours. He explained: ‘That’s where the state will give your employer 80% of your salary a month up to £2,500 if you are unable to work.

He also added that if employers don’t play then those employees are eligible to Universal Credit. He urged employees to show their boss his video if they were unsure or reluctant to use the Furlough scheme.

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