Some bullet points from the government website about Coronavirus Job Retention Scheme and furloughing employees although nothing about holiday entitlement!

  • 0

Some bullet points from the government website about Coronavirus Job Retention Scheme and furloughing employees although nothing about holiday entitlement!

  • Open to all employers who had a PAYE payroll scheme at 28 February 2020.
  • Can cover businesses, charities, recruitment agencies and public sector.
  • Covers full-time, part-time, agency contracts and employees on flexible hours and zero hours contracts
  • Employees have to have been on your payroll on 28 February 2020 – if you made them redundant since then and rehired them they are eligible still.
  • Employees can not work for you while furloughed.
  • The minimum period of furlough leave is 3 weeks and the grant can only be claimed once every 3 weeks even if you pay weekly.
  • Employees will still have tax and national insurance deducted from the payment made to them.
  • Employees can claim 80% (capped at £2,500) plus associated employers national insurance contributions and minimum pension auto enrolment costs.
  • Employers can top up to 80% and pay higher pension contributions but these will not be covered by the grant.
  • Pay for those who pay varies is calculated as:
    • For those with 12 months employment – the higher of the same month’s earnings the previous year or average monthly earnings from the 2019-20 tax year.
    • For those with less than 12 months employment – average of monthly earnings since they started work.
  • Does not include commission, bonus or fees.
  • Can go below national minimum wage or national living wage as they do not apply as employees are not working – but if they do any training while off that time must be paid at NMW/NLW.
  • Employees on statutory sick pay or self-isolating can be furloughed after that.
  • Employee shielding those at higher risk can be furloughed.
  • Employees with more than one job can be furloughed from each job separately and each employer deals with their own claim.
  • Employees on furlough can do Volunteer work or training as long as it does not provide services to generate you revenue.
  • Employees on maternity leave / adoption / paternity / shared parental leave can stay on that – BUT if you pay enhanced payments these are covered and can be claimed under the scheme.
  • Payments received into the business must be included as income in the accounts.
  • No fees can be charged to employees the full grant for the gross pay must be paid to the employee (subject to tax and NI deductions).
  • The scheme is running for 3 months from 1 March.
  • All employment rights continue during furlough.
  • Employees have to be notified in writing and you should keep a copy.

Contact Us

The Martlet Partnership LLP
Martlet House
E1 Yeoman Gate
Yeoman Way
Worthing
West Sussex
BN13 3QZ

Tel.: +44 (0) 1903 600555
Fax.: +44 (0) 1903 600828
E-mail: info@martletpartnership.com

Language: