Personnel Advice and Solutions – Corona Virus Job Retention Grant Scheme – Furlough Leave – Update

6th April 2020

On Friday evening HMRC published their latest guidance on the application of Furlough Leave.

  • Company directors can be furloughed. They can still perform their statutory duties, but not other work for the company.
  • Employees can be furloughed multiple times, ie they can be furloughed for a minimum of three weeks, brought back to work, then re-furloughed for another three weeks.
  • Employers must have a written agreement with their employees to go on furlough leave and keep the record of that written notification for five years.
  • Employees can start a new job when on furlough (meaning they might end up earning 80% of the old salary and 100% of a new one), if the new Employer is willing to start their new recruit under the current circumstances.
  • Employers can reclaim 80% of compulsory commission back from HMRC, as well as basic salary.  But this can only apply to the commission from past sales as the furloughed employees cannot be completing new sales when on furlough leave.
  • Employers can reclaim 80% of fees (whatever that means) from HMRC.  The previous guidance said they could not.
  • The 80% does not include non-monetary benefits (e.g. the value of health insurance or a company car).

 

Please note the above is subject to change. If you have any questions please either call ourselves, or alternatively check the ACAS, NHS and / or Govt. website links below

 

Kind regards

Chris Moses LLM Chartered FCIPD

Posted Monday, 4th July 2022