Coronavirus Job Retention Scheme: Update 3

2020-04-06 Jennifer Renney-Butland posted:

Covid19 update3

We are keeping our clients up to date on employment law changes to help you keep up to speed. On Saturday (4th April 2020) HMRC published an update to the Coronavirus Job Retention Scheme. Here is a brief summary of the main points:

  • Employers must notify employees of their furlough status in writing (the previous guidance did not require it be in writing) and keep a record of that written notification for 5 years. Please contact us if you would like us to send you a copy of our Furlough Leave Agreement.
  • Employees can be furloughed several times, ie they can be furloughed, brought back to work, then re-furloughed (provided each furlough period lasts at least 3 weeks). This means that employers can rotate which staff are furloughed.
  • Employees can start a new job when on furlough.
  • Employers can reclaim 80% of compulsory commission back from HMRC, as well as basic salary. Compulsory commission probably means guaranteed contractual commission only, and can only be referring to commission from past sales although it is not clear how this will be calculated. The 80% excludes non-monetary benefits (eg company car/health insurance). Employers cannot reclaim discretionary commission.
  • Company directors can be furloughed. They can still perform their statutory duties (presumably attending AGM/signing off accounts), but not any other work for the company.
  • Employers can reclaim 80% of “fees” from HMRC (although it is not clear what “fees” means exactly).
  • Annual leave and pay. There has been no guidance as to whether employers can require employees to take annual leave whilst furloughed, whether employees can insist on taking leave, or how much they should get paid for this (eg 100% pay or 80% pay) and we are happy to advise on this if this is something you require help with.

Stay safe and please contact us if you need help. You can email us at info@renneyandco.com with any questions.

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And we're out with update 5 - read on for guidance on updates to the furlough scheme and how holiday/annual leave htwitter.com/i/web/status/1…mg

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There have been some developments on the job retention scheme (the furlough scheme), which has now been extended totwitter.com/i/web/status/1…YB

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With changes happening on a daily basis due to #COVID19 I've had lots of questions from both employers and employeetwitter.com/i/web/status/1…Nm

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