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Updated Guidelines on the Coronavirus Job Retention Scheme
April 6, 2020
What we know now
As we begin week 3 of ‘lockdown’ the Government have announced further changes to the Coronavirus Job Retention Scheme (CJRS). There is still a lot of detail to follow but the additional guidelines are a small step forward and we’ve summarised the key updates below:
- The Government has now clarified that all employers are eligible to claim under the Furlough scheme for any employees, provided that the employee was on PAYE on or before 28th February 2020 and that the employer had enrolled for PAYE online.
- If an employer made an employee redundant or, they stopped working for the business on or after the 28th February (for example if the employee resigned), they can be re-hired and then furloughed. There has been a lot of social media activity in relation to this point but, it’s important to remember that this decision to re-hire remains the employers and, that there is no legal right to be re-hired by a previous employer. Equally, employers should be cautious of refusing any approach from an ex-employee who is seeking to be re-hired where the reason for the rejection is potentially discriminatory. Please make sure that you take professional advice where you are in doubt.
- It’s now been clarified that Apprentices can be Furloughed in the same way as other employees.
- You cannot furlough an employee on SSP but you can claim for individuals who are ‘shielding’ or those who are unable to work because they have caring responsibilities.
- If an employee has 2 jobs, they can be furloughed from 1 or both jobs and the furlough cap of £2,500 will apply to each employer (i.e. an individual could end up with a total of £5,000 in furlough pay)
- An employee who has been furloughed can seek alternative employment and work for another employer (assuming this doesn’t breach any contractual clauses) Any other work is likely to be within key, essential services and therefore has likely been a decision from the Government to allow us all to play our part in keeping the economy going.
- Individuals employed by an umbrella company can be Furloughed (an umbrella company is a separate company that acts as an employer for contractors working on fixed-term contracts.
- Company Directors can be furloughed however, they must not complete any work the for the company (in the same way that any other employees must not work) However, they are able to perform their statutory duties. If a company director is going to be Furloughed it must be a formal adopted resolution of the board of Directors and it must be noted in the company’s records and, as always, communicated in writing.
- Employers must notify employees in writing that they have been furloughed and keep a record of the communication for 5 years. We know that HMRC will retrospectively look into claims although we don’t when how or when so make sure that you keep all communications and records on a secure database.
- Furlough claims can now include past over time, fees and compulsory commission payments (i.e. any contractual commission payments)
- Employees can be furloughed multiple times and you can bring an employee back off furlough to work for a period and then furlough them again at a later date (although each period of Furlough must be for a minimum period of 3 weeks)
As we begin another working week there are still many questions left unanswered (such as how to deal with annual leave) but this is a small step in the right direction.
For specific advice and support please contact us today. We’ll be keeping on top of all of the latest updates and sharing more information as we receive it.
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