On 17 July 2020, HMRC updated its guidance to confirm employers can claim for contractual notice periods for furloughed employees. As the previous guidance referred only to statutory notice pay, there had been some debate surrounding the issue. HMRC's updated guidance therefore provides welcome clarification of the point.
The updated guidance, like the versions before it, continues to confirm the scheme cannot be used to claim any redundancy payments. This essentially means employers can use the scheme to reclaim notice pay, subject to the applicable cap, but must fund redundancy payments separately.
The latest guidance from HMRC in full can be found here.