In light of this, we have updated our FAQs document. Please click on the Download Resource below. In summary the government has now clarified the following:
In brief the government has now clarified the following:
- Apprentices can be furloughed.
- Employees can carry out volunteering work and training whilst furloughed. If training is carried out then they must be paid at least the National Minimum Wage. Company directors can be furloughed if they only cover their statutory duties and there is a formal resolution approved by the Board. They can only claim up to 80% or £2,500 per month of the PAYE element of their remuneration. Dividends are not included. Employees can take another job if they are furloughed. If your employment contract prohibits them from working for anyone else without your permission then you can decide to waive this during the period of furlough leave.
- Employers must have furlough leave agreed in writing and keep the written records for five years.
- Claims can start from the date the employees were furloughed.
- Normal wages has been clarified to now include past overtime (presumed to be guaranteed overtime), fees and compulsory commission (where the commission is contractual).
- Discretionary bonuses, tips, discretionary commission, non-cash payments and benefits in kind e.g. health insurance are not included.
- An employee can be furloughed multiple times but for a minimum of three weeks at a time. So you can furlough, bring them back to work and then furlough again.
- Employees can be made redundant whilst on furlough leave or after furlough leave has ended.
If you would like to provide some guidance to your employee’s regarding the Job Retention Scheme then you can download our Employee FAQs here: Employee FAQ – Job retention scheme
It’s important that you notify any employees that you wish to ‘furlough’ and provide them with an agreement for furlough leave. We have put together a letter template and agreement template to help you with this process. Please visit our blog on Coronavirus Job Retention Scheme below to download it: