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Updated guidance for employers - Coronavirus Job Retention Scheme (Furlough Scheme)

The Government has published further details of the Furlough Scheme.

It is unclear whether HMRC intends to rely on this guidance only (adopting a similar approach to the ACAS Code of Conduct for Disciplinaries, for example) or whether there will be actual new legislation.

We advise that you read the whole guidance and contact us if you wish to discuss it further, but in summary:

  1. Open to all employers who had a PAYE Scheme in place on 28 February 2020.

  2. Employees MUST have been on the payroll on 28 February 2020.

  3. Any organisation can apply (with the possible exception of public sector employers).

  4. Employers can reclaim up to 80% of basic wage costs, up to a maximum of £2,500 per month PLUS the associated NICs and minimum auto-enrolment pension contributions on that wage.

  5. Fees, commissions and bonuses are NOT included.

  6. Employees gross pay as at 28 February 2020 to be used to calculate the 80%.

  7. Employer can choose to top up to 100% but does not have to.

  8. Where employees pay varies, there are two options for calculating what is due.

  9. If 80% takes employees below the NMW that is fine.

  10. Anyone on the payroll on 28 February that has been made redundant CAN be rehired and put on the Scheme.

  11. Must be taken in minimum blocks of three weeks.

  12. The employee must not work AT ALL, but can undertake training and volunteer work.

  13. Employees shielding can be placed on Furlough but not those on sickpay or self-isolating.

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