UPDATED GUIDANCE ON THE JOB RETENTION SCHEME

Published 7 April 2020

The government updated their guidance on the operation of the Job Retention Scheme on Saturday 4 April.

The update seems to show a change from the scheme being positioned simply as an alternative for businesses making their employees redundant, to one which can be used where an employer can't maintain their current workforce because their operations have been severely affected by coronavirus.

This change does raise questions on the potential use of furlough for employees where work is available but they are unable to undertake it as a result of coronavirus (such as those caring for children as a result of school closures).


The new guidance confirms:

1) If the employee is shielding in line with public health guidance (or needs to stay home with someone who is shielding) then you can claim if they can’t work from home.
2) Employees who are unable to work because of caring responsibilities can be furloughed (e.g. employees who need to look after children.) It is unclear at the moment whether this is contingent on there not being work available.
3) Volunteering and training are permitted when the employee is on furlough.
4) Written evidence of the agreement to furlough must be retained for 5 years.
5) Individuals can be taken on and off furlough, but each period of furlough must be in a block of at least three weeks.
6) Employees can work for another employer when they are on furlough as long as this is permitted under the terms of their contract of employment. Employers taking on a furloughed employee should complete Statement C in the starter checklist.
7) The furlough grant can be claimed for any of the following groups if they are paid by PAYE:
a) office holders (including company directors)
b) salaried members of Limited Liability Partnerships (LLPs)
c) agency workers (including those employed by umbrella companies)
d) workers

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Guidance on furlough, annual holidays and Bank Holidays

We're still waiting for clarification from the government on the relationship between furlough, annual leave and Bank Holidays.

Click HERE for some advice in the meantime.


We will keep you informed as new information is released.