The Coronavirus Job Retention Scheme is the main Government scheme to support employed workers during the Coronavirus crisis. Employers will soon be able to claim grants to furlough employees rather than making them redundant. You can read more details in our previous article.

Clarifying which wages can be reclaimed under the Coronavirus Job Retention Scheme

On 4 April 2020 the Government released an update to the scheme, providing further clarification as to which wage costs can be recovered by employers.

  • In addition to base salary, up to 80% of compulsory commission and fees may be repayable under the scheme.  Bonuses and discretionary commission payments are still not included.
  • Amounts sacrificed under payroll Salary Sacrifice schemes cannot be reclaimed from the Government. However, HMRC have confirmed that employers may be able to seek permission from their employees to change their contracts to pause salary sacrifices during the pandemic (see below for help).

Clarifying who can be furloughed

  • In certain circumstances, directors, salaried members of LLPs, agency workers and limb (b) workers may be eligible to be furloughed provided they are paid via PAYE
  • An employee who is furloughed is able to work for another employer if permitted by their employment contract (see below for help)
  • An employee who is currently shielding or needs to stay at home because a family member is shielding can be furloughed

Help with amending employment contracts

Two of the new clarifications will require employers to amend employment contracts before they can be used effectively. If you are an employer who wishes to ask your employees to waive salary sacrifices, or you would like to allow them to work temporarily for other employers, then our expert team of employment solicitors can help. Contact us today to arrange a free initial consultation.

The Backhouse Solicitors Team

Tel: 01245 893400
Visit: 17 Duke Street, Chelmsford, Essex CM1 1JU

Or send us a message through the Contact Us page on this website