Commons Sense

House of Commons · Ministers' Questions

Covid-19: Economic Support

Monday 18 May 2020 · 1 question

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 0 Not answered 0

Key points

  • Ministerial Questions took place on 2020-05-18 regarding Covid-19 Economic Support
  • Amy Callaghan raised concerns about employers hesitating to extend fixed-term contracts on furlough due to HMRC rules
  • The Chancellor stated willingness to examine specific cases to ensure genuine employment contracts receive furlough payments

Topics (select to filter)

Questions & Answers

Q1 Amy Callaghan Lab Nuneaton
Employment Benefits & Welfare
Context

Workers on fixed-term contracts placed on furlough are at risk of losing their jobs when contracts expire, with employers concerned about potential financial repercussions.

Question

Employers placing workers on fixed-term contracts on furlough are unwilling to extend it past the contract end date due to fears HMRC may deem the extension frivolous and seek reimbursement. Can the Chancellor confirm that continuing to furlough these employees without formally extending their contracts will not result in financial penalties for employers?

Answer from The Chancellor of the Exchequer Rishi Sunak

I am happy to look at the specific example mentioned. It is important for us—and to protect the taxpayer—that we are paying furlough payments to those who are genuinely in employment and have a formal employment contract, but I am happy to look at that example.

Answered
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