Furlough Scheme update

Just when we all thought the Government had finalized the changes last week to the Coronavirus Job Retention Scheme (“CJRS”) – furlough - they decided last Friday night to make further changes.  It certainly feels like ground hog day as that is what they did back in the Spring and they made weekly changes every Friday night! 
The main points of the changes are: 

• The scheme will run from 1 November 2020 to 31 March 2021.  However, the details are only provided up to 31 January 2021 and it will be announced at a later date how February and March will be covered. 

• It is now a condition of making a claim that the employer accepts that HMRC will publish information about CJRS claims on the internet. This includes the name of the employer and a “reasonable indication” of the amount claimed. An exception may be made for employers who can show that publication would expose their workforce to “serious risk of violence or intimidation”. 

• If you are planning on placing any employees on furlough, you need to have a furlough agreement in place before they are furloughed.  If they were previously furloughed, you can update the earlier agreement.  

• Claims may not be made for any day that an employee is serving notice if their employment is coming to an end between 1 December 2020 and 31 January 2021.  Previously you could keep the employee on furlough during the notice period which meant the employer could recover some of the costs through furlough for the notice period, as the employee was still employed by the company.  You cannot do this from 1 December 2020.

If you need any advice on furlough, returning to work safely, making changes to employees working hours, redundancies or other employment issues please contact us on 01245 261883 

Extended furlough and lockdown v2

Over the recent weeks there have been so many changes regarding the pandemic, no doubt like us, you may have been confused at some point about what we can and cannot do in our daily lives.  

 
Amongst all of this has been the American Presidential election and watching from afar has been interesting.  We are still wondering if President Trump will ever concede or will he have to be formally removed in January 2021!
 
Businesses are being affected once more with the second lockdown due to the increase in Covid-19 rates.  At least the Government have extended the Furlough Scheme until 31 March 2021 for employers to help keep employees employed.  We are unsure if it will continue with the employer being able to claim the full 80% or if they will have to start making contributions which was required in September and October.
 
If your business can remain open then it has to be Covid safe and ensure that you have the appropriate safety measures in place, which should include keeping 2 metres apart, space between work areas, hand sanitizer available, limit communal areas to be touched and if necessary, wear masks when not at work area.  Also, ensure that all areas are cleaned thoroughly on a regular basis.
 
If you have had to temporarily close due to the lockdown and furlough your employees here are some of the key points for the extended furlough scheme: 

• From 1 November 2020 employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month. 

• Employers can claim for employees who were employed on 30 October 2020, as long as they have made a PAYE RTI submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee, unless they re-employed an employee after 23 September 2020. 

• There is no maximum number of employees that employers can claim for (under the existing furlough scheme, employers could only claim for the number of employees they had claimed for previous to June).  

• Employees returning from maternity leave need to give the statutory eight weeks' notice to end maternity leave early in order to be furloughed (and get furlough pay, typically higher than SMP).  The guidance does not deal with the issue of the employee and employer who agree to shorten that eight-week period. 

• The employer must confirm in writing to the employee that they have been furloughed, and keep a written record for five years.  the employee does not have to confirm that they agree in writing to be furloughed.  

• Employers can up to and including 13 November 2020, enter into furlough agreements with employees which are backdated to 1 November 2020.  
• Employees who were on the employers payroll on 23 September 2020, but were subsequently made redundant or stopped working for their employer after this date can be re-employed and furloughed. 

Currently if an employee is serving notice as they are leaving the company, the employer can keep the employee on furlough during the notice period and claim 80% salary from HMRC.  The employer has to pay the employee their full contractual pay during the notice period and has to pay the difference between furlough pay and full pay. 
 
However, the government is reviewing whether employers should be eligible to claim for employees serving contractual or statutory notice periods and will change the approach for claim periods starting on or after 1 December 2020, with further guidance published in late November.
 
From December 2020, HMRC will publish employer names for companies and Limited Liability Partnerships (LLPs), the company registration number of those who have made claims under the scheme for the month of December onwards.

If you need any advice on furlough, returning to work safely, making changes to employees working hours, redundancies or other employment issues please contact us on 01245 261883