On Saturday 4 April the government issued updated guidance for employers on claiming for employee wages through the new Coronavirus Job Retention Scheme (“CJRS”).
- The updated guidance states that furlough records need to be retained for 5 years. Indicating that HMRC may investigate claims for a considerable time after the CJRS has ended.
- The updated guidance gives clarity on which types of workers can be claimed for and which payments can be included.
- It also makes it clearer that furloughed employees can work for a different employer during furlough so long as their employment contract allows it.
- It has now covered off the situation where employees had resigned from their job after 28 February to start a new one. Their new employer cannot furlough them and in some cases, reported in the media, job offers had been withdrawn. The updated guidance says that the old employer can re-hire the person and then furlough them. However, it does not offer any further guidance of how this will work in practice. Please note there is no obligation to re-hire, but be aware there is a possibility the employee could e.g. bring a detriment claim, if they alleged they resigned because they blew the whistle.
- The updated guidance still does not deal with the questions around holiday and holiday pay. ACAS has updated its own guidance on 2 April here, however the position remains unclear.
You can read the updated guidance in full here.
This alert does not provide a full statement of the law and readers are advised to take legal advice before taking any action based on the information contained herein.