Coronavirus Job Retention Scheme – Further Guidance
Further guidance on the Government’s Coronavirus Job Retention Scheme has now been announced giving us greater clarity on how the scheme will operate. Below we have set out some common questions we have been asked so far with some answers we can now give.
Who is eligible to use the retention scheme?
As an employer, you will only be eligible to use the scheme if you had a PAYE Scheme in place on or before 28 February 2020. This includes those in the public sector and charities. Any employee that you wish to furlough must have been placed on the payroll before this date. Any employee employed later than 28 February will not be eligible.
What are the requirements for furlough?
The payments can be recovered as a grant from the Government in minimum blocks of three weeks. So, an employee should be on furlough for a minimum of three weeks. During this time an employee must not work at all, or they will not be eligible. This does not include training and volunteer work, as long as no income is generated for their employer.
Employees in self-isolation or on sick-pay cannot be furloughed until they recover and are ready to work again. At that point they can be furloughed. Those who are ‘shielding’ (i.e. vulnerable people who are minimising contact with others) as opposed to being sick can be furloughed.
Will agency workers be included?
Agency workers will be eligible, as long as they are not working. Anybody who was on the payroll on 28 February and has since been made redundant can be rehired and put on the scheme.
What can I claim?
An employer can claim 80% of the wage costs of an employee up to a maximum of £2,500. Any bonuses or commission payments are not included in this. On top of this amount, employers can also claim the associated National Insurance and minimum pension contributions on that wage. It is up to employers as to whether they want to top up wages above this amount.
How do I claim?
Employers will be able to claim from HMRC through an online portal. You can only claim once every 3 weeks, and these claims can be backdated to 1 March 2020. Further guidance on the mechanics of how this works is expected to follow shortly.
How should i approach employees?
When agreeing a change in hours and/or acceptance of 80% pay, the current employment law already in place will apply, and any implementation of furlough will therefore need to be done correctly and lawfully.
If you are considering using the Government’s Job Retention Scheme and require further information, or to discuss any employment law matters raised by this article, please contact Herrington Carmichael’s Employment Department on 0118 977 4045 or employment@herrington-carmichael.com.
This reflects the law at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought as appropriate in relation to a particular matter.
Latest Articles & Legal Insights
Support for businesses through the national lockdown
With a third national lockdown in force across the country, the government has announced the introduction of one-off top up grants.
Employment Law Update December 2020
This is a keynote summary of some of the main developments in employment law in the last month.
Will Brexit effect UK Employment?
The Withdrawal Agreement ensures people will continue to be able to benefit from their current workers’ rights based on EU law.
ICO issues detailed guidance on responding to subject access requests
ICO issues significant fines against British Airways & Marriott International Inc for well-known security breaches…
Employment Law Update – November 2020
Our employment law team bring you the latest talking points in the November update…
Extension to the Furlough Scheme
Only a matter of hours before being due to close, the Government announced that the Coronavirus Job Retention Scheme (Scheme) would be extended…
Sign up
Enter your email address for legal updates on Employment & Immigration Law.
Top read insights in 2019
Contract Law
Material Breach of Contract
What is a ‘material’ breach of contract by a party to a commercial contract? This is a critical issue regularly considered by the courts. What constitutes a material breach and what are the remedies?
Property Law
Purchasing Land – Option Agreements
A developer and a landowner can enter into an Option Agreement. What are the strategies that can be employed by both landowners and developers to assist in such land deals?
Divorce and Family Law
What are the Tax Implications of a Civil Partnership?
Is there a significant tax saving to be made by a couple who are married or in a civil partnership that cohabitating couples simply don’t qualify for?
Land & Property Dispute
Restrictive Covenants – The Price of Modification
Having identified that your land is burdened by a restrictive covenant and for the purposes of this article the covenant in question will be that only one residential building can be erected on the land. What do you do next?
Award winning legal advice
We are solicitors in Camberley, Wokingham and London. In 2019, Herrington Carmichael won ‘Property Law Firm of the Year’ at the Thames Valley Business Magazines Property Awards, ‘Best Medium Sized Business’ at the Surrey Heath Business Awards and we were named IR Global’s ‘Member of the Year’. We are ranked as a Leading Firm 2020 by Legal 500 and Alistair McArthur is ranked in Chambers 2020.









London
60 St Martins Lane, Covent Garden, London WC2N 4JS
Camberley
Building 2 Watchmoor Park, Riverside Way, Camberley, Surrey GU15 3YL
Wokingham (Appointment only)
4 The Courtyard, Denmark Street, Wokingham, Berkshire RG40 2AZ
info@herrington-carmichael.com
© 2020 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.
Herrington Carmichael LLP is authorised and regulated by the Solicitors Regulation Authority.
Privacy | Legal Notices, T&Cs, Complaints Resolution | Cookies | Client Feedback