Childcare and Furlough - Different Approaches

HMRC has updated its guidance to state that employers can (not must) furlough employees whose health has been affected by coronavirus (COVID-19) or any other conditions, including if they are unable to work from home, or working reduced hours, because they:

• are clinically extremely vulnerable, or at the highest risk of severe illness from coronavirus and following public health guidance

• have caring responsibilities resulting from coronavirus (COVID-19), such as caring for children who are at home as a result of school and childcare facilities closing, or caring for a vulnerable individual in their household

This resolves an area of uncertainty, which is whether parents who stay at home to look after school-age children are eligible for furlough. They are.

Some employers do not want to furlough their employees and prefer to take a different approach for those who have childcare issues because schools or nurseries are closed. Swiss insurance firm Zurich for example has introduced "lockdown leave", constituting two weeks of paid leave for parents facing emergency childcare issues in the face of primary and secondary school closures during this third national lockdown. Zurich claims that it is the first UK employer to offer "lockdown leave" and it estimates that one in five of its employees who have children could benefit from the provision.

Sources: Daniel Barnett and Zurich insurance firm offers fully paid "lockdown leave" in UK, theguardian.com, 6 January 2020.

If you need support with furlough guidance for your organisation, please contact the Starford team on 01342 347063 or email hello@starfordlegalhr.com