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Furlough Leave – 27th March 2020

Coronavirus Job Retention Scheme (furlough leave)

HMRC have now published guidance for employers on how the Coronavirus (COVID-19) Job Retention Scheme (furlough leave) will operate.

We have highlighted some points in the guidance which are new:

  • Employers can use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. However, this does not include fees, commissions or bonuses.
  • Employees hired after 28 February 2020 cannot be furloughed or claimed for in accordance with this scheme.
  • The scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer.
  • Employees on unpaid leave cannot be furloughed, unless they were placed on unpaid leave after 28 February.
  • Employees on sick leave or self-isolating should get Statutory Sick Pay, but can be furloughed after this.
  • 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.
  • A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation.
  • A furloughed employer does not have to be paid the National Minimum Wage (NMW) if 80% of their wage falls below the NMW. However, if an employee is required to complete any training during furlough leave, this should be paid NMW.
  • You can only submit one claim at least every 3 weeks, which is the minimum length an employee can be furloughed for. Claims can be backdated until the 1 March if applicable.

We recommend that you read the guidance in full and get in contact with us if you have any further questions. Click the link here to access the guidance.

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