4th April Update - Coronavirus Job Retention Scheme
Over the weekend the Government has amended the guidance of the Job Retention Scheme. There are some areas that have received additional clarification:
1. Apprentices can be furloughed along with other employees. They can continue to train while on furlough.
2. Individuals such as cleaners and nannies can be furloughed, as long as they are paid through PAYE.
3. Foreign nationals can be furloughed
4. If an employee left a company after 28th for ANY reason (not just redundancy) they can be rehired and then furloughed.
5. Employees that are self-isolating or on sick leave are only eligible for Statutory Sick Pay (SSP). Furlough and SSP are mutually exclusive.
6. Employees that are shielding, and you would otherwise have to make redundant, along with those looking after them, can be placed on furlough leave
7. Those with caring responsibilities resulting from Covid-19, for example, those looking after children, can furloughed.
8. Employees on fixed term contacts, can have their contracts extended during furlough.
9. Employees can work for another employer while on furlough leave, if their contract allows, or you’re happy for them to do so.
8. You can be placed on furlough, as long as you paid through PAYE if you are:
a. you are an agency worker
b. you are a company director
c. you are a salaried member of a Limited Liability Partnership
d. you are a Limb (b) worker
e. you are an office holder (Director) – should be agreed by the board and in writing and duties should be no more than statutory director duties ‘no more than reasonable’.
10. Employees can be ‘rotated’. If you have a team of two people and you only need one for a period, then one can be placed on furlough for 3 weeks and then brought back to work while the other team member goes on furlough leave.
11. Employers can now claim for payments that you are contractually obliged to pay your employees e.g commission, fees, bonuses and past overtime
12. Benefits In Kind and Salary Sacrifice are not included in the scheme
13. Employees can volunteer the business they work for, as long as that voluntary work does not generate revenue, or provide a service on behalf of the company.
14. All agreements between employers and employees must be in writing and all records need to be kept for 5 years.