Coronavirus Job Retention Scheme

Since our last update, there have been numerous (almost weekly) updates to the Coronavirus Job Retention Scheme. As a reminder, this scheme allows employers to place employees on “furlough“ and HMRC will reimburse the employer up to 80% of their wages (subject to a maximum of £2,500) and the employer’s NIC and minimum pension contributions on this sum. Furloughed employees must not carry out any work for their employer.

Among the welcome clarifications and changes have been:

extension of the scheme to the end of June 2020;
inclusion of those hired up to 19 March 2020;
that employees accrue and may take holiday during furlough and would have to be paid in full for this (although HMRC would still reimburse the furlough element);
employers may reinstate employees who had left (for any reason) and furlough them; and
furloughed employees may act as employee representatives without ending furlough.

Despite the scheme, some of our clients are pessimistic about the outlook after lockdown is lifted and are considering redundancies. It is important to remember that, where an employer proposes making at least 20 redundancies at one establishment within a 90 day period, there is a requirement to consult with appropriate representatives of the employees for at least 30 days before serving notice.

Please contact Daniel Isaac for further information.

The contents of this email are intended for general information only and does not constitute legal advice. Wallace LLP cannot accept responsibility for any loss arising from the use of the content in this email. This information was prepared on 6 May 2020.