Coronavirus Job Retention Scheme
In the Government’s Job Retention Scheme, all UK employers, irrespective of size, will be able to access support to continue paying part of their employees’ salary for those that would otherwise be dismissed during this coronavirus pandemic.
Employers will need to:
- Designate affected employees as ‘furloughed workers,’ and notify employees of this change.
- What does “furloughed” mean? The definition of “furlough” is to allow or force someone to be absent temporarily from work.
- The guidance states that “changing the status of employees remains subject to existing employment law and, depends on the employment contract”. Therefore, employers will be required to consult with employees before designating employees as “furloughed workers”. This will entail advising employees that in view of the temporary cessation of work they will no longer be required to attend work. It is important to advise them that they are not being dismissed but will remain on the payroll.
- Employers should then submit information to HMRC about the employees that have been furloughed and their earnings through a new HMRC online portal.
HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per worker per month. This will be backdated to 1st March and will be initially open for three months and may be extended as necessary. HMRC is currently working to set up a system for reimbursement.
Please contact Sejal Raja if you would like and advice or support during this unprecedented time; email@example.com
This briefing is for guidance purposes only. RadcliffesLeBrasseur accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.