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Thorntons Advice for Businesses: Job Retention Scheme Update - Perthshire Chamber of Commerce

Thorntons Advice for Businesses: Job Retention Scheme Update

Job Retention Scheme: An Update

Due to an unforeseen technical error, the link in the previous mailshot did not work. It has been updated in this version. We apologise for any inconvenience.

Late on 26 March 2020, the Government published further, much needed, guidance on its Job Retention Scheme through which employers can place eligible employees on furlough and claim back 80% of their wages up to a maximum of £2500 from HMRC.

The guidance brings some welcome clarifications, although a number of questions remain unanswered. The guidance confirms that the Scheme will be backdated to 1 March 2020 where employers have laid off employees from that date due to the affects of Coronavirus. It will initially be open for a period of 3 months. In terms of when employers will be able to claim, it is expected that the Scheme will be up and running by the end of April 2020.

Are business owners neglecting their personal affairs?

  • Which organisations are eligible to apply to the Scheme?
  • Which employees can I place on furlough?
  • What about staff who are self-isolating or looking after dependants?
  • Does it cover employees who have reduced their hours and/or wages?
  • Can I rotate furlough between employees?
  • Can employees carry out any work while on furlough?
  • What about training or volunteer work?
  • Do employees accrue holiday while they are on furlough?
  • Can I ask employees to take holidays when they are on furlough?
  • What if someone already has annual leave booked before they were placed on furlough?
  • Can employees who are maternity or other types of parental leave be furloughed?
  • What is the position of employees who are on sick leave?
  • My employee has another job. Can I claim for them through the Scheme?How much will employers get reimbursed and how much should they pay employees?
  • How are wage costs calculated?
  • What about employees whose hours are variable or they are on a zero hours contract?
  • What if paying the employee 80% will bring their income below the National Minimum Wage?
  • How can employers choose which employees to place on furlough?
  • Do employers need to furlough employees or can they make them redundant or terminate their contracts?

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Thorntons’ Employment Team

If you have any questions about dealing with the employment impacts of coronavirus please don’t hesitate to get in touch with our team of Employment Solicitors who will be able to help.

03330 430 350

www.thorntons-law.co.uk/our-people
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