GUIDANCE ON FURLOUGH CLAIMS (June 15th 2020)
Changes to the Coronavirus Job Retention Scheme (CJRS) is now available on GOV.UK.
WHAT TO DO NOW
- Consider which employees you want to keep on full-time furlough and which employees will come back to work – on what hours – to agree arrangements with them as needed for your business.
- You will be able to bring back to work previously furloughed employees on a part-time basis from 1 July (known as flexible furloughing).
What you need to do from July
- start your flexible furloughing of employees from 1 July onwards. You can decide the hours and shift patterns they work to suit the needs of your business – you’ll pay their wages for the time they’re in work and can apply for a job retention scheme grant to cover any of their usual hours they are still furloughed for.
- You can still keep employees on full furlough if you need to
- claim for periods ending on or before 30 June, by 31 July – this is the last date you can make those claims
- claim for further furlough periods as needed – the first time you will be able to make a claim for days in July will be 1 July.
As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme. Company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed. Where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.
Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company during hours which they are recorded as being on furlough, they may do so provided they do no more than would reasonably be judged necessary for that purpose, i.e. they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.
This also applies to salaried individuals who are directors of their own personal service company
If your employee is shielding
Employees who are unable to work because they are shielding in line with public health guidance (or need to stay home with someone who is shielding) can be furloughed. Such an employee can continue to be furloughed from 1 July so long as you have previously submitted a claim for them in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
If your employees are working reduced hours
For claim periods up to 30 June if an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme.
For claim periods starting after 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim Coronavirus Job Retention Scheme grant for the hours not worked.
This only applies where you have previously submitted a claim for the employee in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
If you made employees redundant, or they stopped working for you on or after 28 February 2020, you would have been eligible to re-employ them and put them on furlough as long as you did this by 10 June. You can claim for their wages from the date on which you furloughed them, even if you did not re-employ them until after 19 March 2020.
This applies as long as the employee was on your PAYE payroll as at 28 February 2020, which means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 28 February 2020.
From 1 July an employee is eligible to be claimed for under the scheme, if you have previously submitted a claim for them in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
From 1 July, only employees that you have successfully claimed a previous Coronavirus Job Retention Scheme grant for will be eligible for further grants under the scheme. This means they must have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June. The last day an employee could have started furlough for the first time was 10 June.
Employers will have until 31 July to make any claims for claim periods up to 30 June.
The number of employees you can claim for in any claim period starting from 1 July 2020 cannot exceed the maximum number of employees you claimed for under any claim ending by 30 June 2020.