The Labour Government: “Change begins now”
HM Treasury have published further guidance on the Coronavirus Job Retention Scheme (CJRS or Furlough Scheme)
The Direction formally extends the Furlough Scheme until 31 March 2021 and withdraws the Coronavirus Job Retention Bonus (under which employers could claim £1,000 per employee brought back from furlough and employed until end January 2021).
It also clarifies the position of employees serving a notice period from 1 December 2020 onwards. Employers will no longer be able to claim under the CJRS for any employee serving a notice period after this date. This applies to both statutory and contractual notice and includes employees that have resigned or are retiring.
So if you were contemplating giving notice on or after 1 December 2020, you will not be able to claim back any monies under the CJRS in respect of the notice period. If an employee is currently serving out their notice period, you will only be able to claim under the CJRS for the part of the notice worked up to and including 30 November 2020.
Another development to the Furlough Scheme is that HMRC will start publishing names of employers claiming under the scheme. Details of the employer’s name and a “reasonable indication” of the amounts claimed will be made publicly available.
The Furlough Scheme will be reviewed at the end of January 2021 and new guidance will be published covering how the scheme will continue to run in February and March 2021, which we will keep you up to date with.
Please note that the information and any commentary on the law contained in this bulletin is provided free of charge for information purposes only. Every reasonable effort is made to make the information and commentary accurate and up to date, but no responsibility for its accuracy or for any consequence of relying on it, is assumed by the author or publisher.
This bulletin does not, and is not intended to, amount to legal advice on a specific case or matter. You are strongly advised to obtain specific legal advice on your case or matter.
If you require employment law advice or have any queries about the issues raised in this article, please contact Lee Gabbie at Lee.gabbie@bracherrawlins.co.uk or phone on 020 7404 9400
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