Furlough: updated guidance confirms TUPE and overseas citizens’ eligibility


Employees who were transferred to another organisation under TUPE after 28 February 2020 are eligible for furlough, the government has confirmed in the latest revision to its Coronavirus Job Retention Scheme guidance.

The new employer is eligible to claim for 80% of the employees’ wages under the CJRS if either the TUPE or PAYE business succession rules apply to the change in ownership.

HM Revenue & Customs’ update last week also provides clarity around some other areas of confusion about the scheme, including confirmation that staff are not able to work for companies linked to their employer while on furlough and that employers can switch employees from sick pay to furlough and vice versa.

It also confirms that employers can furlough employees who are being “shielded” or are on long-term sick leave, and they do not have to be placed on sick pay.

For employers with overseas citizens in their organisations, the guidance states that grants under the scheme are not considered “access to public funds” – which some residence permits forbid holders from receiving – and that employees under all types of visa are eligible for furlough.

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