{"id":9004111222084149,"date":"2020-08-20T10:12:05","date_gmt":"2020-08-20T09:12:05","guid":{"rendered":"https:\/\/www.hgf.com\/?p=9004111222084149"},"modified":"2026-02-18T14:54:33","modified_gmt":"2026-02-18T14:54:33","slug":"furlough-and-entitlement","status":"publish","type":"post","link":"https:\/\/www.hgf.com\/de\/knowledge-hub\/legal-updates\/furlough-and-entitlement\/","title":{"rendered":"Furlough and entitlement"},"content":{"rendered":"

Recently we reviewed with a client a new invention, for which there is a (currently unanswered) question whether the employee devised this invention whilst on furlough. It has therefore led us to consider how the furlough scheme may affect entitlement for other inventions and employers.<\/p>\n

In response to the global COVID-19 pandemic approximately 9.5 million jobs from 1.2 million different employers[1]\u00a0were furloughed in the UK. According to HMRC\u2019s guidelines a furloughed employee cannot make money for the employer\u2019s organisation or any organisation linked or associated with the organisation, or provide services for the employer\u2019s organisation or any organisation linked or associated with the organisation[2]. As such, if an employee devises an invention whilst on furlough the question arises would the employer be entitled to that invention under Section 39 UK Patents Act 1977 which defines ownership of an employee invention in the UK?<\/p>\n

Section 39 UK Patents Act 1977<\/h5>\n

(1) Notwithstanding anything in any rule of law, an invention made by an employee shall, as between him and his employer, be taken to belong to his employer for the purposes of this Act and all other purposes if –<\/em><\/p>\n

(a) it was made in the course of the normal duties of the employee or in the course of duties falling outside his normal duties, but specifically assigned to him, and the circumstances in either case were such that an invention might reasonably be expected to result from the carrying out of his duties; or<\/em><\/p>\n

(b) the invention was made in the course of the duties of the employee and, at the time of making the invention, because of the nature of his duties and the particular responsibilities arising from the nature of his duties he had a special obligation to further the interests of the employer\u2019s undertaking.<\/em><\/p>\n

(2) Any other invention made by an employee shall, as between him and his employer, be taken for those purposes to belong to the employee.\u201d<\/em><\/p>\n

There are thus three different situations under \u201cnormal circumstances\u201d that an invention may be owned by the employer:<\/p>\n

    \n
  1. The invention was made in the course of the employee\u2019s normal duties and the circumstances were such that an invention might reasonably be expected to result.<\/li>\n
  2. The invention was made outside of the course of the employee\u2019s normal duties, but in the course of duties specifically assigned to the employee, and the circumstances were such that an invention might reasonably be expected to result.<\/li>\n
  3. The invention was in the course of employee\u2019s normal duties and they had a special obligation to further the interests of the employer\u2019s undertaking<\/li>\n<\/ol>\n

    Regarding the second option, given the very definition of furlough is that an employee cannot work, it seems logical that an employee cannot be specifically assigned duties where an invention might reasonably be expected to result. Accordingly, in that situation if the invention was made outside of what would ordinarily be the employee\u2019s normal duties, the invention may be owned by the employee even if the employer had (during the furlough) specifically assigned a task to the employee which resulted in the invention.<\/p>\n

    Regarding the first and third option, if the invention arose during what would in normal times be considered to be the employee\u2019s normal duties (and the invention might reasonably be expected to result from those duties, or the employee had a special duty to further the interests of the employer \u2013 for instance if they are a company director), the question remains whether those normal duties persist during furlough.<\/p>\n

    Looking to case law,\u00a0Prosyscor Ltd v Netsweeper Inc & Ors<\/em>\u00a0[2019] EWHC 1302 (IPEC) addressed employee inventions being devised at home, outside office hours and using only tools owned by the individual, and concluded in a case where the employer would have irrefutably been entitled to the invention otherwise, the fact that the acts were done at home makes no difference.<\/p>\n

    \u201ca case where there is otherwise doubt about whether an individual\u2019s acts were conducted in the course of his normal duties, the fact that they were done at home, outside office hours and using only tools owned by the individual\u00a0may tip the assessment towards the view that the acts were not done in the course of his normal duties. But where, as here, they are very much the sort of acts which the individual was paid to carry out for the company,\u00a0the fact that they were done at home makes no difference. Acts of a nature such as to be within the normal course of an employee\u2019s duties do not cease be so merely because the employee decides to carry out those normal duties at home and\/or outside office hours and\/or on his own equipment\u201d<\/em><\/p>\n

    However, this decision assumes that during office hours at least the employee\u2019s normal duties were still in effect. In\u00a0Harris\u2019s Patent<\/em>\u00a0[1985] R.P.C. 19, the \u201cnormal duties\u201d of an employee were defined as the actual duties which he was employed to do[3]. In the case of the employee being on furlough, it seems there are two options: either the employee\u2019s actual duties are effectively on hold, or the furlough period may be considered simply an extended period at home and outside office hours and their actual duties have remained the same as normal times. The former option would tend to suggest that the employer has no claim to the invention. The latter option would tend to suggest that the employer would be entitled as the invention in line with the decision in\u00a0Prosyscor<\/em>.<\/p>\n

    Conclusion<\/h5>\n

    It is currently unclear how the UK courts will define an employee\u2019s duties during furlough. It would therefore seem prudent to formalise ownership for any inventions made by an employee while they are on furlough by executing an assignment from the employee-inventor to the employer.<\/p>\n

    \n
    \n

    [1] https:\/\/www.statista.com\/statistics\/1116638\/uk-number-of-people-on-furlough\/#statisticContainer<\/a>\u00a0Daniel Clark, 22 July 2020<\/p>\n<\/div>\n

    \n

    [2]\u00a0https:\/\/www.gov.uk\/guidance\/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#when-furlough<\/a><\/p>\n<\/div>\n

    \n

    [3]\u00a0Commentary on Section 39, UKBC-CIPAPAT 466946312<\/p>\n

    This update was prepared by HGF Patent Director\u00a0Richard Gover.\u00a0If you would like further advice on this or any other matter, please contact Katherine or Richard.\u00a0 Alternatively, you can contact your usual HGF representative or visit our\u00a0Contact page<\/a>\u00a0to get in touch with your nearest HGF office.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Recently we reviewed with a client a new invention, for which there is a (currently unanswered) question whether the employee devised this invention whilst on furlough. 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