Chancellor of the Exchequer, Rishi Sunak has today announced that the Job Retention Scheme will be extended until the end of June. The scheme, which allows businesses to furlough employees with the government paying cash grants of 80% of their wages up to a maximum of £2,500 per month is now open for fourth months, backdated from the 1 March until the end of June 2020.
As well as this, the key date for eligibility to the CJRS has been changed from 28 February 2020 to 19 March 2020. Thus employers, in order to be eligible, must have created and started a PAYE Scheme on or before 19 March 2020. Similarly, employees must have been on that PAYE payroll by that same date. They also however need to be notified to HMRC on an RTI (real time information) submission on or before 19 March 2020.
It is important that in order to apply for the CJRS, the Employer and the Employee must have agreed in writing that the Employee will cease all work. The HMRC is likely to require evidence that the employee has agreed and is not partaking in any work for the employer (except for training).
The final update is that employees can now take holiday entitlements during furlough and this will not break their furlough.
Employers have the right to tell employees when to take holidays. If they decide to do this, they must tell staff at least twice as many days before as the amount of days they need people to take. For example, if they want to close for 5 days, they should tell everyone at least 10 days before. Employers can also cancel pre-booked paid holiday. If they decide to do this, they must give staff at least the same number of days’ notice as the original holiday request. For example, if an employee has booked 5 days holiday, the employer must tell them at least 5 days before the holiday starts that it is cancelled.
This could affect holiday staff have already booked or planned. So, employers should:
Bank holidays are usually part of the legal minimum 5.6 weeks’ paid holiday. Employees must get their usual pay in full for bank holidays.
If you would like any help or support, do not hesitate to contact THS on 01633246666 or 07704016007.