United Kingdom government extends furlough scheme until end of June

Daniel Fowler
July 6, 2020

"Employers must continue to make full use of the scheme to furlough workers and protect jobs". For example, there's no express mention of "past overtime" or "compulsory commission" referred to in the Guidance. If an employer chooses to provide benefits to a furloughed employee, this "should be in addition to the wages that must be paid under the terms of the [CJRS]". Benefits can't be included (which is fair enough) but payments that arise from a "legally enforceable agreement, understanding, scheme, transaction or series of transactions" are included.

It's really hard to reconcile these two statements and it's not clear whether employers can (with the employee's agreement) bring SSP to an end earlier than they might otherwise have done in order to furlough them.

Can you take a second job while on furlough?

It is not clear what will happen to workers after June, with fears firms will have to make large-scale redundancies if it is not extended further if the lockdown continues.

With regard to employees on long-term sick leave or those that are being shielded, it is at the employer's discretion as to whether they are furloughed. The rationale for this change is clear - it is to bring as many employees as possible within the scope of the CJRS, whilst minimising the opportunity for fraudulent claims. If both parties agree, the employer must confirm it in writing.

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Your employer's decision to stop asking you to work is more than understandable, however rather than making you redundant they should put you on furlough. One view is that relegating this to Guidance is arguably "no more than an encouragement to public sector and publically funded employers not to draw on public funds through applying to the scheme".

This will continue until the government ends the scheme or you return to work.

Clause 8.1 explains that an employer can remover the gross amount of earnings paid "or reasonably expected to be paid" by the employer to an employee plus any employer national insurance contributions on that amount and the amount allowable as a furlough claimable pension contribution.

On April 9, 2020, HM Treasury confirmed in a tweet that guidance on the holiday issue in relation to the CJRS would be issued this week and that employers should keep their approach to holiday and holiday pay for those employees who are furloughed under review. It does not address whether employees can take or are required to take annual leave while they are furloughed.

Employee transfers under TUPE and on a change in ownership: The Direction changes the previous HMRC guidance with respect to TUPE. Our writers and experts aim to give you the best guidance to what help is available during the crisis. Payments will be made into employers' bank accounts within four to six working days of receiving claims.

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