Click on the link below to read the summary of the main proposals. This link will update to show the latest information from the government.
You will see in the above link a section on the Corona Virus Job Retention Scheme, “CJRS”. Under the Scheme all UK employers will be eligible for assistance where an employee has been designated as a “furloughed worker”, i.e. an employee who is not required to work (at all) as a result of the current crisis but whom the employer wishes to retain in employment for when the crisis dies down and more normal trading can resume. The employer will receive a grant of 80% of the furloughed employee’s salary, which will be capped at £ 2,500 per month. The current plan is that this will be in place for three months, at which point it will be reviewed. This will be backdated to 1 March 2020. Employers will need to register for the Scheme via an online portal, which HMRC will set up, but which may not be in operation until the end of April.
If you are an employer who wishes to make use of the Scheme, you will first need to have a conversation with employees whom you wish to furlough. You will need to confirm in writing to them that you are putting them on furlough, as this is likely to be a change to the terms of their employment contract. You will need in due course to provide the following information:
- The names of employees whom you propose to furlough and the precise date from which they are being furloughed.
- You will need to explain why you have selected these members of staff and state whether you will be adding to the 80% contribution from the government.
Please note that the government will conduct some form of selection and vetting process, so that it is not guaranteed that all employers applying for the Scheme will be successful.
Please also note that we are not HR or Employment Law experts. Changing the status of employees remains subject to existing employment law. The above link refers you to the Croner Taxwise HR support line on 0844 892 2807, which you are welcome to use as a client of John Turner FCA. Please get in touch if you would like to use this support line, so that I can give you a code to use.
As further details of the Scheme are announced we will forward them to you. Please get in touch if you have any questions.