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Samuel Phillips Law Blog
The Government’s job retention scheme is due to end on 30 June 2020. Employees can be subject to notice whilst on furlough. In previous postings I have indicated they are probably entitled to full pay, albeit there is a counter argument, with the employer recouping furlough monies from HMRC.
A day will come when we will not speak of Furlough. Sadly that day is not today. There was a Treasury Direction to HMRC on 15 April followed by yet another update to Government Guidance on the Job Retention Scheme on 17 April.
The Parliamentary Select Committee made an announcement yesterday (Wednesday 8th April 2020) that HMRC’s online portal for the Coronavirus Job Retention Scheme will open on 20th April 2020 with a view to the first payments being made to employer’s on 30th April 2020. Please do ensure that your online PAYE is functioning and up to date.
The scheme applies to employees who have been furloughed meaning that they have been put on a period of leave during which they are not required to work. The employer must agree with the employee that they will be placed on temporary leave (furlough leave) and this then allows the employer to recover 80% of the employee’s wage costs or £2,500 per calendar month whichever is lower.
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