Covid-19 Economic Support 2020-05-18
2020-05-18
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Questions & Answers
Q1
Direct Answer
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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.
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?
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.
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