Coronavirus Job Retention Scheme

(Furloughing)

Started from the 1st March 2020.

Initially for 3 months – then extended until 30th June now extended to 31st October.

Grant for 80% of normal pay plus the Employer NI contributions and minimum automatic enrolment employer pension contributions on that wage until 31st July 2020. Maximum grant £2,500 per month per employee.

Grant for 80% of normal pay but not including Employer NI contributions and minimum automatic enrolment employer pension contributions on that wage from 1st August to 31st August. Maximum grant £2,500 per month per employee.

Grant for 70% of normal pay but not including Employer NI contributions and minimum automatic enrolment employer pension contributions on that wage from 1st September to 30th September. Maximum grant £2,190 per month per employee.

Grant for 60% of normal pay but not including Employer NI contributions and minimum automatic enrolment employer pension contributions on that wage from 1st October to 31st October. Maximum grant £1,875 per month per employee.

It is available to employees on the payroll as at 19th March 2020 and notified to HMRC via RTI

The portal for making claims at the following link: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Flexible furloughing from 1st July. Employees can return to work on a part-time basis with the employer paying the wage for the actual time worked.

No new entrants allowed onto the Coronavirus Job Retention Scheme after June 30th. Given that the minimum furlough period is 3 weeks this effectively gives a date of 10th June for registering new furlough cases.

Directors can be furloughed and still perform their statutory duties, but only their salary is covered by the 80% grant, not dividends.

Company Directors should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.

Employees can be furloughed more than once (but each furlough period must last for at least three weeks), subject to new cases being registered before 10th June.

Furloughing means ‘on a leave of absence’ but still employed. Therefore, they cannot carry out any work that is providing a service or generating revenue. Part-time allowed from end of July.

If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme.

Employees can still undertake training whilst on Furlough but different rules apply to what you have to pay them

Employers can reclaim 80% (or applicable maximum) of contractual commission for a worker back from HMRC, as well as their basic salary.

The furlough grant does not include non-monetary benefits, such as a car

Employers must notify and get agreement from employees of their furlough status and keep a record of that for five years.

Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed

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. You can claim for furloughed employees who are shielding in line with public health guidance (or need to stay home with someone who is shielding) if they are unable to work from home and you would otherwise have to make them redundant.

Employees who are unable to work because they have caring responsibilities resulting from coronavirus (COVID-19) can be furloughed. For example, employees that need to look after children can be furloughed.

If your employee has more than one employer they can be furloughed for each job. Each job is separate, and the cap applies to each employer individually.

Employees can be furloughed in one job and receive a furloughed payment but continue working for another employer and receive their normal wages.

You may allow an employee to take on ‘temporary work’ with another employer whilst on furlough.

Employees on fixed term contracts can be furloughed. Their contracts can be renewed or extended during the furlough period without breaking the terms of the scheme. Where a fixed term employee’s contract ends because it is not extended or renewed you will no longer be able claim grant for them.

For more details go to the GOV website.

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