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.

• Any employer which has a UK bank account and which started a PAYE payroll scheme on or before 28^th February 2020 can apply to put workers on “furloughed” status.
• The government will then pay them cash grants by way of HMRC re-imbursement of 80 per cent of their wage costs up to a cap of £2,500 as long as the employee stays employed.
• The employer can top up the 80% to full pay. If they don’t, they need to agree with the employee a variation in the employment contract to reduce pay. Please contact us for further details.
• The scheme is to run for 3 months starting from 1^st March 2020 but may be extended.
• There is no limit on the amount a single employer can claim under the scheme.
• Payments are currently expected to start in April.

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:-

• Apprentices can be furloughed.
• Company directors can be furloughed.They can comply with their statutory duties whilst furloughed but cannot do any other work.Specific procedures must be followed to record the furlough.
• You can only claim for furloughed employees that were on your payroll on or before 28 February 2020.
• Employees can be on any type of contract, including zero hours contracts.
• Tax and National Insurance deductions will continue to be made.
• Employees who were made redundant or stopped working for you after 28 February can be re-employed, furloughed and a claim made under the Scheme.
• An employee can be furloughed for one job and still receive normal wages for another job.
• Employers must confirm in writing to their employees that they have been furloughed and keep the record for 5 years.
• Claims start when the employee finishes work and starts furlough, not when the decision is made.
• You can claim for regular payments that you are obliged to make to your employees e.g. past overtime and compulsory commissions. Benefits in kind are not included.
• Employees still have the same rights at work, such as maternity and other parental rights.
• Information is now given on how to claim.

CONTACT US

To discuss Employment issues, please either use the contact form on the right, email us at info@ramsdens.co.uk or call us on 01484 821 500 to speak to a member of our team.