Recently, the most common questions I've been getting from my clients have been about the Job Retention Scheme ...
The current plan is that this will be in place for 3 months, at which point it will be reviewed and it will be backdated to 1 March 2020. Employers must set out which of their employees are 'furloughed workers' and make sure they are aware they have been furloughed. I suggest you get their agreement and document it now, while we wait for more procedural details.
Furlough is the equivalent of lay-off. So, you can lay-off staff, continue to pay them and recover 80% of that cost up to £30k per annum. The current guidance states, "You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to". Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
We are also unclear about how quickly the amounts will be refunded. As it's a reimbursement, for now, I'm assuming employers have to continue to make the wage payments when due. Other questions that need answering around pension contributions and employers NI still haven't been answered. And does it apply to directors too?
So, there's still a lot to find out about the Job Retention Scheme, but you can be sure I'll let you know via another blog post, by email and on social media as soon as I hear more.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.