Corona Virus Job Retention Grant Scheme – Furlough Leave – Update 15/4/2020
Latest Update issued 15/4/20. The Govt has issued its latest advice this afternoon, which includes one or two significant changes to the previous information that has been issued
- The qualifying date, when the Employee or Worker has to have been on the employer’s payroll, has changed from 28 February to 19 March 2020.
As a result a lot of additional people are now covered by the scheme, in particular anyone who had moved jobs between the end of February and the 19/3/20, the day before the Job Retention Grant was announced.
- Employees / Workers Employers can claim for
You can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020. This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts.
To be eligible for the grant, when on furlough, an employee cannot undertake work for, or on behalf, of the organisation or any linked or associated organisation. This includes providing services or generating revenue. Employers are free to consider allocating any critical business tasks to staff that are not furloughed. While on furlough, the employee’s wage will be subject to usual income tax and other deductions.
- If you made employees redundant or they stopped working for you after 28 February
If you made employees redundant, or they stopped working for you on or after 28 February 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme. This applies to employees that were made redundant or stopped working for you after 28 February, even if you do not re-employ them until after 19 March.
- If your employees are working reduced hours
If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme.
- If your employee is on unpaid leave
If an employee started unpaid leave after 28 February 2020, you can put them on furlough instead.
If an employee went on unpaid leave on or before 28 February, you cannot furlough them until the date on which it was agreed they would return from unpaid leave.
· If your employee is self-isolating or on sick leave
If your employee is on sick leave or self-isolating as a result of Coronavirus, they’ll be able to get Statutory Sick Pay.
If, however, employers want to furlough employees for business reasons and they are currently off sick, they are eligible to do so, as with other employees. In these cases, the employee should no longer receive sick pay and would be classified as a furloughed employee.
Employers are also entitled to furlough employees who are being shielded or off on long-term sick leave.
You can claim back from both the Coronavirus Job Retention Scheme and the SSP rebate scheme for the same employee but not for the same period of time. When an employee is on furlough, you can only reclaim expenditure through the Coronavirus Job Retention Scheme, and not the SSP rebate scheme. If a non-furloughed employee becomes ill, needs to self-isolate or be shielded, then you might qualify for the SSP rebate scheme, enabling you to claim up to two weeks of SSP per employee.
Chris Moses LLM Chartered FCIPD
Personnel Advice and Solutions Ltd
Tel: 01529 305056
Published research can be viewed at https://ssrn.com/author=2701127