The Treasury has produced a direction to HMRC on the Coronavirus Job Retention Scheme. This will determine an employer’s eligibility to claim Furlough Pay and also how this can happen.
Why is this important?
The direction provides instructions on the operation of the Scheme and will confirm when an employer is and is not eligible.
The direction states that the employee and employer must have agreed in writing that the employee will cease all work in relation to their employment. The previous guidance by HMRC only required notification by the employer. This may mean that employees currently on furlough leave, in the absence of a written agreement, will not fall within the scheme.
Other changes and clarifications include which employees you can claim for, what you can claim for and what employees can do while on furlough leave.
What should you do?
- Read the direction and ensure you understand your obligations under the scheme.
- Review your correspondence with furlough employees and ensure employees have provided their agreement to being placed on furlough leave and cease working.
If you need guidance in relation to Furlough leave for your employees, please contact Trethowans on 0800 2800 421 or email Employment.Alert@trethowans.com to find out how we can help.