Update – Further Guidance on the Furlough Scheme

On Friday night, the Government published an update on their Coronavirus Job Retention Scheme.  You will find a link to the guidance here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme?mc_cid=177bacbc11&mc_eid=f82d9eada2

The main headlines of this update are as follows:-

  • The update clarifies that employees are able to take on a new job whilst furloughed.  If an employee wants to do this, it is up to the employer whether or not they agree to waive any terms in the employment contract preventing work for other employers.
  • Up to 80% of compulsory commission can be claimed back by employers from HMRC, which is good news for estate agents.  This will only apply to past sales, as furloughed employees obviously won’t be completing new ones.
  • The 80% of salary that employers can claim from HMRC does not include non-monetary benefits such as car allowance or health insurance.
  • Company directors can be furloughed, and will still be able to perform their statutory duties but not any other work for the company.
  • The guidance states that employers must notify employees of their furlough status in writing and keep the record of that written notification for five years.

If you would like advice on how the Government’s Furlough Scheme affects your workforce and how best to utilise it, please contact our HR and employment law team. 

Blanchards Bailey

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