The EAT has upheld the decision of the ET in Mones v Lisa Franklin Ltd (2023), in which it was held that the employee's furlough pay can be calculated in accordance with the terms agreed upon by the employer and employee through a variation in the employee's contractual terms. The formula set out in the Treasury Directions governing the Coronavirus Job Retention Scheme (CJRS) was not mandatory for employers to use, and did not supersede existing employment law rights and obligations, nor did it establish any new statutory or contractual responsibilities between the employer and employee.
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