The UK Treasury has released the updated version of the Coronavirus Job Retention Scheme (CJRS). It includes details on directors’ pay, confirming that furloughed employees cannot be asked to work for a linked or associated company, and more information on how to apply CJRS to employees working for more than one employer.
The CJRS is a temporary scheme open to all UK employers for at least three months starting from March 1, 2020.The UK Treasury has released an updated version of the Coronavirus Job Retention Scheme (CJRS). It includes details on directors' pay, confirming that furloughed employees cannot be asked to work for a linked or associated company, and more information on how to apply CJRS to employees working for more than one employer, UK Fashion & Textile (UKFT) has said.#
HMRC (HM Revenue and Customs) has now started testing the Coronavirus Job Retention Scheme portal on a small number of employers ready for the planned full release on April 20, 2020. Any employer looking to claim back 80 per cent of furloughed employees pay under CJRS will need to make the necessary claim via the online portal, according to UK Fashion and Textile Association (UKFT).
To access the portal and to make a claim, the employer must be enrolled for PAYE online.
It can take HMRC up to ten days to be issued an activation code for new online PAYE users. The code is sent via post to the PAYE registered address. You can only claim for furloughed employees that were on your PAYE payroll on or before February 28, 2020. Employees hired after 28 February 2020 cannot be furloughed and claimed for in accordance with this scheme.
Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed.
When your employees are on furlough you cannot ask your employee to do any work that makes money for your organisation or provides services for your organisation. They can take part in volunteer work or training. If you made employees redundant or they stopped working for you after February 28, 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme. If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme. You can only claim for employees that started unpaid leave after February 28, 2020.
If your employee is on sick leave or self-isolating, they’ll be able to get statutory sick pay. You cannot claim for employees while they’re getting statutory sick pay, but they can be furloughed and claimed for once they are no longer receiving statutory sick pay. You can claim for furloughed employees who are shielding in line with public health guidance (or need to stay home with someone who is shielding) if they are unable to work from home and you would otherwise have to make them redundant.
Employees who are unable to work because they have caring responsibilities resulting from coronavirus (COVID-19) can be furloughed. For example, employees that need to look after children can be furloughed.
If your employee has more than one employer they can be furloughed for each job. Each job is separate, and the cap applies to each employer individually. Employees can be furloughed in one job and receive a furloughed payment but continue working for another employer and receive their normal wages.
Employees on fixed term contracts can be furloughed. Their contracts can be renewed or extended during the furlough period without breaking the terms of the scheme. Where a fixed term employee’s contract ends because it is not extended or renewed you will no longer be able claim grant for them.
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