HMRC published version 3 of the Coronavirus Job Retention Scheme (CJRS) last thing on Thursday, just as we were all finishing for the Easter weekend and a well-earned break – we thought! We decided to wait until today to send this to you so you could enjoy your Easter weekend in (hopefully) peace.
Three big changes, and several little ones.
The big ones:-
- employers are free to switch employees from sick pay to furlough and vice versa, although this should not be abused by using furlough to ‘top up’ small amounts of SSP for short term absences. Also, clarification that employers can furlough ‘shielding’ employees (they do not have to be placed on sick pay), those living with someone who is shielding and those unable to work because of childcare responsibilities.
- confirmation that those with certain work visas will not be regarded as breaching their visa conditions if they receive funds under the furlough scheme: “Grants under the scheme are not counted as ‘access to public funds’, and you can furlough employees on all categories of visa.”
- we have the answer to the TUPE question – employers of newly TUPE’d employees can put them on furlough: “A new employer is eligible to claim under the CJRS in respect of the employees of a previous business transferred after 28th February 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership.”
The little ones:-
- clarification that the reclaimable NI and pension elements are on the furlough salary, not normal salary.
- stating that employees cannot work for organisations that are linked to the employer, as well as not working for the employer, when on furlough; they can take work for other (non-linked) employers and retain both the Furlough Pay and any other wages they receive. However, your contracts of employment may prohibit your employees taking up other employment without notifying you/gaining your written permission; it is up to you whether you withhold that permission and you may wish to do so if the other work is, for example, with a competitor business. It probably isn’t equitable to withhold your permission without a sound reason for doing so.
- businesses that engaged in payroll consolidation schemes after 28 February can place employees on furlough.
- no part of the reclaimed grant can be siphoned off to fund benefits; the entire grant must be paid to the employee (with no deductions for fees, administration charges etc.).
You can find the full guidance at https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme?utm_source=22073d98-c3f4-47e3-b012-3fa9f1a81e4e&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate#payroll-consolidation
