Lockdown 2.0 And Beyond – An Update On Furlough

Employment Law Solicitor, Emma Spandrzyk, discusses England’s second lockdown and the updates to the Government’s furlough scheme….

There have been several changes to the rules on furlough over recent weeks. Below are answers to some of the most common questions that we are being asked in relation to the latest Coronavirus Job Retention Scheme (Furlough Scheme).

Can my business continue to use the Scheme post November 2020?

The Furlough Scheme has been extended from 1 November 2020 until 31 March 2021. The full guidance on the Scheme has been published and can be accessed here:

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

It is expected that the Scheme will be reviewed in January 2021.

What are the rules?

From 1 November 2020, employers can claim 80% of an employee’s salary for hours not worked up to a maximum of £2,500 per month. The responsibility to meet pension contributions and employer National Insurance contributions will continue to rest with employers.

To use the Scheme, did the employee have to be furloughed under a previous arrangement?

There is no requirement for employees to have been furloughed under a previous scheme.

You are able to claim for employees who were employed on 30 October 2020, as long as your business made a PAYE RT1 submission to HMRC between the 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.

Must the furlough last for a set period?

There is no minimum period for which an employee must be furloughed but an employer can only claim for periods of at least seven days at a time.

Is there a maximum number of employees that I can claim for under the Scheme?

No, although this was the case under the previous scheme.

Can I still consider flexible furlough arrangements?

Yes. Employees can continue to work some hours and be furloughed for the remainder.

Can I claim for employees serving out their notice from 1 December?

For claim periods starting on 1 December 2020, an employer cannot claim for any days on or after 1 December 2020 during which the employee was serving a contractual or statutory notice period. This also applies to employees serving out notice of resignation or retirement.

The Government promised us a Job Retention Bonus. Can I claim for this?

The Job Retention Bonus has been put on hold for the time being and as a result is not currently open to businesses to claim for.

Should my business make a claim under the Scheme, will this be confidential?

Making a claim is now conditional on the employer accepting that HMRC will publish information about claims on the internet. This will include the name of the employer and an indication of the amount claimed. The measure is thought to be a way of discouraging businesses who do not need to make claims from making claims under the Scheme.

What practical steps should I be taking?

Consultations should take place with staff and furlough agreements must be in place documenting the changes to usual working arrangements.

Agreements should be retained and stored for five years as there will be a requirement to make them available to HMRC upon request.

If you are concerned about the effect that these changes will have on your business, please contact Emma Spandrzyk in our employment team. Emma can be contacted on freephone 0800 011 6666 or via email at e.spandrzyk@timms-law.com

 

Emma Spandrzyk
November 2020