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The Coronavirus Job Retention Scheme (“CJRS”) – otherwise known as furlough leave, is part of a package of measures introduced by the Government to support public health, business and employees through the Coronavirus crisis.
The situation is changing rapidly and this article is based on the further details of the Coronavirus Job Retention Scheme which were issued on 26th March 2020.
The Government published an update on the Coronavirus Job Retention Scheme on 3 April 2020, clarifying a number of areas that has given rise to questions. The guidance can be seen here but some of the main points to note are:-
Answer - Yes
Answer - It appears that the grant will pay the higher of: (1) the earnings in the same pay period in the previous year; or (2) the average earnings in the whole previous 12 months (or fewer if they have worked for less time)
Answer – No, the scheme does not cover periods where the employee has been working.
Answer – the scheme is backdated to March 1 to cover these employees. You will need to agree with the employee to re-employ them if they were made redundant after 28th February 2020 before placing on furlough.
Employees laid off or made redundant since 28th February for a reason not connected with coronavirus are likely to be excluded
Answer Yes, normal employment law rules apply. Be aware that notice pay is likely to be based on normal rates of pay
Answer No, an employee must be furloughed for a minimum of 3 weeks for their employer to be allowed to claim.
Answer – Yes
Answer – It is likely you’ll need to pay their full 100% salary