Jarred Consulting

We are pleased to provide a further update on the Coronavirus Job Retention Scheme (“Furlough Scheme”) in response to continuing guidance from the government and HMRC. Please note that this note is intended to be supplementary to those we have published previously on 7th April 2020  22nd April 2020  5^th May 2020  13th May 2020 Employees’ Consent to be Furloughed There has been much confusion on this subject caused primarily by conflicting guidance.  The most recent guidance has now clarified that employees do not need an employee’s written consent however there must be a record confirming consent.  In other words, employers don’t need employees to sign anything but there must be a written record, such as a letter or email from the employer to the employee, which confirms that the employee has consented to be furloughed.  There is also a requirement that the agreement should specify the main terms and conditions upon which the employee will cease work. The Treasury Direction (as amended) now reflects the position in the guidance that agreement to furlough can be express or implied and can be made by way of a collective agreement. These written records should be retained for a period of 5 years.  Sick Pay From 6 April Statutory Sick Pay (“SSP”) increased to £95.85 per week (previously £94.25) for up to 28 weeks.  The Statutory Sick Pay (Coronavirus) (Suspension of Waiting Days and General Amendment) Regulations 2020 removed the previous 3 day waiting period for payment of SSP for employees whose period of sick leave is related to Covid-19 (backdated to 13 March). On 17 March the Chancellor announced that the government will reimburse employers with fewer than 250 employees for any Covid-19 related SSP for the first two weeks of absence, backdated to 14 March.  The Coronavirus Statutory Sick Pay Rebate Scheme was launched on 26 May and HMRC has issued guidance on how to claim. The portal through which claims can be made can be found at: https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-your-employees-due-to-coronavirus-covid-19 Remember that in these circumstances payment of SSP applies to employees whose absence is due to Covid-19 symptoms whether they have been diagnosed or not. Normally employees can self-certify their absence for up to 7 calendar days; thereafter a doctor’s Fit Note would be required.  The government are urging employers to accept an online isolation note which can be used to provide evidence of the need to self-isolate when someone is absent for more than 7 days due to having Covid-19 symptoms, or is self-isolating for 14 days because they live with someone who has symptoms. If an employee becomes sick whilst on furlough leave the most recent guidance clarifies that it is up to the employer to decide whether to move them to SSP or to keep them on furlough.  If the employee remains on furlough the employer can continue to make a claim for the employee through the furlough scheme in the normal way.  If however the employee is moved to SSP the employer can no longer make a claim through the furlough scheme and will have to pay the SSP.   Unpaid Leave and Furlough Employees cannot be on unpaid leave and furloughed simultaneously, and where a period of unpaid leave started before 1 March and the envisaged end date is after the end of the scheme, that employee cannot be furloughed. Pension Scheme Trustees There is now a specific provision that allows pension scheme trustees to fulfil their duties whilst on furlough leave without this counting as work. Training Activities Whilst on Furlough Leave Employees on furlough leave can now study or undertake training even if not directly relevant to their role.  Its purpose can be to generally improve their effectiveness in the workplace provided it does not contribute to business activities, generate income or profit, or significantly contribute to the production of goods or services for sale.  Extension to the Coronavirus Job Retention Scheme Although we covered this in our last note it is worth reminding you that the current scheme will remain in place until the end of July 2020; thereafter a revised scheme will be in place until the end of October 2020.  Whilst it will be important to plan for the implementation of the revised scheme (particularly if you are “topping up” employees’ salaries), details of the scheme that will be in place for August, September and October will be released by the end of May.  It is anticipated that employers will be expected to contribute to the revised scheme.   If you have any questions relating to this update please get in touch.