17
Apr
2020
17
Apr
2020
The Government has updated its guidance (again!) see: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
The attached PDF (see below) highlights in track changes where amendments have been made to the guidance so that you can see at a glance what has been changed.
You will note that employers now have the additional requirement of having to send HMRC real time information submission notifying them of a payment in respect of the furloughed employee so something to flag to payroll around pay records. The guidance now states that you can only claim for furloughed employees that were on your PAYE payroll on or before 19 March 2020 and which were notified to HMRC on an RTI submission on or before 19 March 2020.
Treasury Direction
Yesterday the Government issued a Direction containing authority and instructions for making payments under the Coronavirus Job Retention Scheme.
One of the key developments from the Direction is paragraph 6.7. This states:-
An employee has been instructed by the employer to cease all work in relation to their employment only if the employer and employee have agreed in writing (which may be in an electronic form such as an email) that the employee will cease all work in relation to their employment.
I’ve highlighted the key points in bold. The draft furlough letter to employees previously made it clear that they must not do any work but in light of the above you should ensure you have agreement to furlough leave in writing. If any employees have not acknowledged receipt of letters then you could send them a reminder (making the above requirements clear). I set out a suggested draft below for your amendment.
Draft Email:-
Dear [NAME]
Coronavirus Job Retention Scheme - “Furlough Leave”
I hope you are all keeping well in the circumstances.
As you are aware, due to the coronavirus outbreak (COVID-19), and the resulting significant drop in available work, we have been required to take emergency measures and seek the assistance of the Government’s Coronavirus Job Retention Scheme as a result of the impact of COVID-19.
We have received updated Government guidance and therefore we are writing to clarify that during furlough leave you must not complete any work. We do not believe any work has been completed but for the avoidance of any doubt, please accept this email as a formal instruction that you are not permitted under any circumstances to complete any work in relation to your employment whilst on furlough leave. This is important as if you breach this instruction the Company will not be able to seek the assistance of the grant under the Scheme.
As per earlier correspondence, you should remain contactable during normal working hours in case we need to contact you with any updates about your furlough leave.
Please can you acknowledge receipt of this correspondence by return email to confirm your agreement. Your email does not need to be very long, for example the following would be acceptable:-
“Thank you for your email above. I confirm that I am currently on furlough leave (on the terms previously specified in email correspondence dated [X]). I understand and accept that I am not permitted to complete any work in relation to my employment during furlough leave.”
We are required to hold an email on file as evidence. This is important as the Company will not be able to seek the assistance of the grant without evidence of your furlough leave.
If you have any queries, then please do not hesitate to contact me otherwise I will be back in touch with further updates as they arise.
I look forward to hearing from you.
Yours sincerely
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