Latest Furlough Guidance for Employers
The Government have now released guidance for the extended Coronavirus Job Retention Scheme which essentially highlights that employers:
Can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month;
Can claim for employees who were employed on 30 October 2020, as long as they have made a PAYE RTI submission to the HMRC between 20 March 2020 and 30 October 2020 notifying a payment of earnings (unless they are re-employed as an employee after 23 September 2020);
- Are no longer subject to claiming for a maximum number of employees (as before when they could only claim for the number previously claimed for prior to June 2020). It should be noted that those on maternity leave still need to give the statutory 8 week notice period to return in order to be furloughed and receive the relevant pay (instead of SMP);
- Need to ensure that any period of furlough is confirmed in writing to the employee and that a written record is kept for a period of 5 years;
- Can agree retrospectively to furlough someone with effect from 1 November 2020, as long at the agreement itself occurs on or before 13 November 2020;
- Should check which employees can be furloughed as the government intends to review whether employers should be eligible to claim for those employees serving contractual or statutory notice periods and change the approach for claim periods starting on or after 1 December 2020. This could therefore impact such claims in relation to any dismissals where notice has been given on or after 1 December 2020; and
- Should check if employee’s wages can be claimed as from December 2020, the government also intends to publish employer names for companies and Limited Liability Partnerships, as well as company registration numbers of those who have made claims under the scheme for the month of December onwards.
All the more reason to ensure compliance with the furlough scheme!