Further Furlough Guidance…
With only a short time to go before the online portal which employers will use to make a claim under the furlough scheme is due to go live, the government has again updated its guidance for employers on some areas.
The updates that are likely to be of most interest are:
- Whilst on furlough, in addition to employees not being able to work for their employer, they cannot work for organisations that are linked to their employer.
- It is confirmed that an employer should only claim for employer’s National Insurance (NI) contributions on the furlough pay, not the employee’s full pay.
- If employees transferred to a new employer under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) after 28th February 2020 it was unclear whether the new employer would be able to access the furlough scheme in respect of these employees, the new guidance has now confirmed that this is possible.
- For employees returning from statutory leave (such as maternity leave) after 28th February 2020, the guidance states that claims ‘should be calculated against their salary, before tax, not the pay they received whilst on statutory leave.’ Claims for those on variable pay, returning from statutory leave should be calculated using the higher of either the same month’s earning from the previous year or average monthly earnings for the 2019-2020 tax year.
- It has been clarified that employees who are unable to work because they are shielding in line with public health guidance (or need to stay home with someone who is shielding) can be furloughed. There has also been further clarification regarding options for employers regarding sick leave and furlough. Before taking any action in relation to an employee regarding furlough, sick leave or sick pay it’s important to seek advice from Kingfisher Professional Services Ltd on the facts of your case.
The updated guidance can be accessed here.
If you have an employment law matter you would like assistance with, please do not hesitate to contact Kingfisher Professional Services Ltd as we are happy to help.