Updated guidance on the Job Retention Scheme
On 4th April 2020, further details were released and published by HMRC on the Job Retention Scheme.
The main updates are as follows:-
- Company directors can be furloughed – Whilst we assumed this was the position, it has been confirmed that salaried company directors are eligible to be furloughed. Once furloughed, they are entitled to continue carrying out their statutory duties they owe to the company but should not carry out any work that would generate commercial revenue or provide services to or on behalf of the company.
- Working for another employer – Employees are entitled to work for another employer whilst on furlough leave, as long as this is permitted by the employee’s contract of employment.
- Keeping records – Employers must confirm in writing to their employee that they have been furloughed. They must keep records of the communication for five years.
- Employers can claim for any regular payments that they are obliged to pay their employees i.e. wages, past overtime, fees and compulsory commission payments. Discretionary bonus, commission payments and non-cash payments are excluded.
- Benefits – The reference salary should not include the cost of non-monetary benefits provided to an employee (i.e. health insurance, company car etc.).
- Apprenticeship Levy and Student Loans should continue to be paid as usual. The grant does not cover these.
- Employees can be furloughed multiple times (i.e. furloughed, brought back to work and then furloughed again). Each instance must be for a minimum period of 3 consecutive weeks.
Whilst this update is helpful, we are still awaiting further guidance on several issues such as annual leave and termination of employment contracts in relation to furloughed employees.
Please find our updated Job Retention FAQs here .
If you would like any advice on the Job Retention Scheme, or any other employment related matter, please contact our Employment Partner, Kate Brooks on 01202 525333 or email firstname.lastname@example.org