The Coronavirus Job Retention Scheme: Update - Kuits Solicitors Manchester

The Coronavirus Job Retention Scheme: Update

The Coronavirus Job Retention Scheme: Update

30th April 2020 - Published by Kuits employment team

The latest version of The Coronavirus Job Retention Scheme (CJRS) guidance has been updated by the government in a number of important areas, as follows:

  • Employees who are union or non-union representatives are permitted to carry out duties and activities for the purpose of individual or collective consultation of employees or other workers while they are furloughed if they do not provide services to generate revenue for or on behalf of their employer. This does not clarify expressly whether furloughed employees can be involved in a process to elect representatives but that would appear to be a reasonable inference from this change of guidance.
  • A period of furlough can be extended by any amount of time while an employee is on furlough. This means that if an employee remains on furlough and does not return to work, then the extension of the furlough period does not need to be for a minimum period of three weeks.  The scheme end date is the last date that an employer can make a claim through the CJRS.
  • A new employer can claim under the CJRS in relation to employees of a previous business who transferred under TUPE after 28th February 2020. This date had been changed to 19th March 2020 by the 15th April 2020 version of the guidance.  This amendment will assist those employers who acquired transferred employees between 28th February and 19th March 2020 and who, under the terms of the guidance as it then was, were unable to claim.
  • The guidance confirms that company directors with an annual pay period are covered by the scheme.
  • The latest guidance also includes further detail on what is (and is not) included when calculating furlough pay, although there remains some uncertainty regarding the meaning of “regular salary or wages”.
  • HMRC has also updated the employee guidance on calculating 80% of an employee’s wages, stating that the online calculator cannot be used if an employee receives any discretionary payments in the pay period being claimed for, or as an annual pay period.

To speak to an experienced advisor for advice on the Job Retention Scheme and/or a potential redundancy consultation in your business, please call Kevin McKenna on 0161 838 7851 or email kevinmckenna@kuits.com.

On 4th June our next HR Breakfast Club will be hosted as an online webinar. Delivered by our expert employment law team, our breakfast club webinar will offer you the opportunity to get clear, practical advice on all the latest changes. Register for free here.

COVID-19: Managing your workforce through the ups and downs

On Tuesday 28 May, we hosted a webinar exploring all of the recent updates to the Coronavirus Job Retention Scheme, plus how to manage a redundancy consultation to help businesses plan for the worst while hoping for the best. View the recording below.

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