Extended Furlough Guidance has been released this week, and it’s not even Friday!
Two key things to check:
Can you claim?
Which employees can you claim for?
Please be aware:
The Government is reviewing whether employers are eligible to claim for employees serving notice (statutory or contractual). The approach is likely to change after 1st December. If you’re considering dismissing someone (for whatever reason, including redundancy), give notice before 1st December. We’ll keep you updated as this develops.
There have been many employers making false claims under the CJRS (we’re sure you’re not one of them!). The Government will be publishing names of companies and LLPs of those making claims from December onwards.
Important notes and reminders:
The extended Job Retention Scheme (CJRS) allows employers to claim 80% of an employees’ usual salary for hours not worked. Subject to a max £2500 per month;
The employee must have been employed on 30th October and the employer must have made a PAYE RTI submission between 20 March and 30 October; unless the individual was re-employed after 23 September.
This time, there is no maximum number of employees to claim for (as per the last extension);
Employers must confirm in writing to the employee they have been furloughed and keep this record for 5 years. Those on our retained services will receive a detailed document as part of the offering. For anyone else, please drop me a line.
Employers CAN retrospectively furlough an individual (from 1 November) as long as the agreement to do this occurs on or before 13 November. SO CALL US NOW!
Important notes and reminders:
CJRS extended to end of March 2021.
Claims can be made in December (for November).
Employees need not have been furloughed previously.
The 80% calculation of wages applies for time spent on furlough. The employer can top this up to 100%.
Flexible furlough continues allowing employers flexibility for any shift pattern, including on a part time basis.
Employees should be paid for hours worked. These earnings are subject to tax, NICs and pension contributions.
Employers will pay for hours worked as well as employer National Insurance Contributions and employer pension contributions.
Employers will also pay National Insurance Contributions and employer pension contributions for hours not worked i.e. on the full amount paid to the employee, including the scheme grant.
Employer contributions will be reviewed in January.
The CJRS applies to any type of employment contract, including zero hours workers.
As before, publicly funded organisations are not expected to use the CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted.
Furloughed employees must not undertake ANY work for the employer. Employees can, however, undertake training, and undertake work (or volunteer) for another organisation as long as their contract allows. We provide an online training platform which is free for the first month – why not develop your employees whilst they’re furloughed?
Record and retain records of hours worked and furloughed for 6 years.
Employees eligible for the extended scheme but not previously eligible, the ‘alternative’ calculations of reference pay and usual hours must be used.
For all other employees, the CJRS calculations for calculating reference pay and usual hours should be used.
Those shielding, or staying at home with someone who is shielding, can be furloughed where they are unable to work. This also applies to those caring for others resulting from Covid, including those looking after children.
Please do remember all rights remain in place – don’t take any chances with employment law. If you are in any doubt, please contact Moss HR.
Remember, holiday does continue to accrue during periods of furlough.
Take out a free trial of our online system to manage holiday, taking the admin away from business owners and managers.
We’re also pleased to offer this at 50% discount for the first three months too!
If you’d like to read the full guidance it’s here.
Stay safe everyone; we are in this together!
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