COVID19 Employment Law Update #7
EVERYTHING YOU NEED TO KNOW ABOUT FURLOUGH
AND THE CORONAVIRUS JOB RETENTION SCHEME
FURTHER GUIDANCE ON DIRECTORS & UNION/ NON-UNION REPRESENTATIVES AND PROPOSALS FOR RETURNS TO WORK
The Government updated their Guidance on the Coronavirus (COVID-19) Job Retention scheme yet again on 30 April 2020. Lisa Hatch highlights the key changes below. Please note that her earlier articles should be read in light of the updated guidance.
The 1 Essex Court employment team are currently providing advice and assistance to employers across a broad range of businesses on the furlough scheme and all employment law related aspects of the Covid-19 crisis. If you would like any further information or advice on this or any matter please contact our clerks on 0207 936 3030 or firstname.lastname@example.org .
1 Essex Court will remain open for business as usual throughout the COVID-19 Crisis.
What are the changes?
Directors: there is new guidance that directors who are paid annually (which appears to cover directors receiving income as dividends) are eligible to claim as long as they meet relevant conditions including:
Being notified to HMRC on an RTI submission on or before 19 March 2020, which relates to payment of earnings in the 19/20 tax year
Trade union or non-union representatives: the new guidance states that employees who are union or non-union representatives may undertaken duties and activities for the purpose of individual or collective representation of employees or other workers but in doing this must not provide services to or generate revenue for or on behalf of the employer or a linked organisation.
Post-furlough returns to work
The Job Retention Scheme is scheduled to finish on 30 June 2020, although the Government has indicted that it may be extended if necessary. There is no clear indication of how the scheme will come to an end but it is worth noting that:
on Monday 27 April 2020 Rishi Sunak, chancellor of the exchequer, told MPs that he was planning a gradual winding down of the Job Retention Scheme to avoid a surge in unemployment; and
it was reported on Friday 1 May 2020 that the Treasury is in talks with business groups to allow employers to claim support under the Job Retention Scheme for staff returning to work part-time, in order to facilitate a gradual reopening of the economy in the coming months.
Where can I find more information?
You can find updated guidance (last updated 30 April 2020) from HMRC online:
Also available online are: