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The change clarifies that an employer can make a claim under the CJRS for an employee serving a notice period, whether that be a statutory one or a contractual one.
It is worth reiterating that any pay that is paid for a notice period can only be reclaimed under the CJRS for an employee who is serving their notice period. This therefore excludes any payment made to a leaving employee in lieu of notice.
At a time when, unfortunately, employers may have to look at this, it is important to be clear on the difference between the two.
This is the minimum amount of legal minimum notice that an employer can give an employee. This has not changed as a result of the COVID-19 pandemic. The employer must provide the employee with:
Employees must give the employer at least one week’s notice when employed for a month or more.
However, it could be that the contract of employment specifies for a longer notice period. For example, regardless of service, it could be that the contract specifies that three months’ notice will be given. As the employer and employee have mutually-agreed to this, this is the notice period.
For more information visit the guidance on the Advisory, Conciliation and Arbitration Service (ACAS) Website for this important employment law consideration. The last thing that employers want at this time is to find that they are in breach of providing statutory or contractual notice and, therefore, the termination of the employment is a ‘wrongful dismissal’.
To summarise, there are two aspects which employers will want to consider: