Longer Reads

Coronavirus: Furlough Leave – Updated Government Guidance

The HMRC online portal is now open for applications from businesses looking to claim 80% of the wages of their furloughed employees. Government guidance for employers and employees continues to be updated and our Employment team provides a rundown of three key points.

1 minute read

Published 23 April 2020

Authors

Share

Key information

The HMRC online portal is now open for applications from businesses to claim 80% of the wages of furloughed employees up to £2,500 per month per employee.

More than 140,000 businesses applied using the portal for over 1.3 million employees on the first day alone. The portal can be accessed here.

Government guidance for employers and employees has continued to be updated since the portal went live on 20 April 2020, and we provide a rundown of three key points here.

Annual Leave

The updated guidance has confirmed that employees are free to take both bank holidays and annual leave whilst they are furloughed.

In the absence of a contractual agreement otherwise employers will need to pay the holidays of furloughed staff at their pre-furlough remuneration. This is likely to take the form of a ‘top-up’ from the government contribution to the pre-furlough contractual salary.

Statutory Sick Pay

The guidance states that the Coronavirus Job Retention Scheme (the Scheme) is not intended for short-term absences of employees as there is a three-week minimum period during which employees must be furloughed. Therefore, employers should not consider short-term illness or self-isolation as reason in itself to furlough. However, if employers wish to furlough employees who are not required in the business and those employees happen to be off sick that does not preclude them being furloughed.

Employers are also able to furlough workers who are on long-term sick leave. If this is done, employers will be able to claim under the Scheme for the period when the employee is furloughed and from the SSP rebate scheme for the period when they are on sick leave. However, these must be independent claims and an employee can only benefit from one regime at a time.

Should an employee who is not furloughed become ill or need to self-isolate then employers may apply for the SSP rebate scheme and make a claim for two weeks of SSP per employee.

Delayed Furlough Grant

The guidance has confirmed that employers do not have the unilateral right to delay paying wages pending receipt of the Government’s grant covering 80% of salaries up to £2,500.

Any agreement to delay wages, for example pending receipt of the furlough monies from HMRC, must be accepted in writing by the employee either as part of the furlough agreement or otherwise.

The Government has announced that the grant should be paid within six working days of a successful application being lodged with the HMRC portal and so it may be possible for businesses to apply in a timely manner and receive the grant in time for the April payroll.

If you have any queries about your specific circumstances, our specialist Employment team are here to help.

Related latest updates
PREV NEXT

Related content

Arrow Back to Insights

Longer Reads

Coronavirus: Furlough Leave – Updated Government Guidance

The HMRC online portal is now open for applications from businesses looking to claim 80% of the wages of their furloughed employees. Government guidance for employers and employees continues to be updated and our Employment team provides a rundown of three key points.

Published 23 April 2020

Associated sectors / services

  • Employment law for employers
  • Employment law for employees

Authors

The HMRC online portal is now open for applications from businesses to claim 80% of the wages of furloughed employees up to £2,500 per month per employee.

More than 140,000 businesses applied using the portal for over 1.3 million employees on the first day alone. The portal can be accessed here.

Government guidance for employers and employees has continued to be updated since the portal went live on 20 April 2020, and we provide a rundown of three key points here.

Annual Leave

The updated guidance has confirmed that employees are free to take both bank holidays and annual leave whilst they are furloughed.

In the absence of a contractual agreement otherwise employers will need to pay the holidays of furloughed staff at their pre-furlough remuneration. This is likely to take the form of a ‘top-up’ from the government contribution to the pre-furlough contractual salary.

Statutory Sick Pay

The guidance states that the Coronavirus Job Retention Scheme (the Scheme) is not intended for short-term absences of employees as there is a three-week minimum period during which employees must be furloughed. Therefore, employers should not consider short-term illness or self-isolation as reason in itself to furlough. However, if employers wish to furlough employees who are not required in the business and those employees happen to be off sick that does not preclude them being furloughed.

Employers are also able to furlough workers who are on long-term sick leave. If this is done, employers will be able to claim under the Scheme for the period when the employee is furloughed and from the SSP rebate scheme for the period when they are on sick leave. However, these must be independent claims and an employee can only benefit from one regime at a time.

Should an employee who is not furloughed become ill or need to self-isolate then employers may apply for the SSP rebate scheme and make a claim for two weeks of SSP per employee.

Delayed Furlough Grant

The guidance has confirmed that employers do not have the unilateral right to delay paying wages pending receipt of the Government’s grant covering 80% of salaries up to £2,500.

Any agreement to delay wages, for example pending receipt of the furlough monies from HMRC, must be accepted in writing by the employee either as part of the furlough agreement or otherwise.

The Government has announced that the grant should be paid within six working days of a successful application being lodged with the HMRC portal and so it may be possible for businesses to apply in a timely manner and receive the grant in time for the April payroll.

If you have any queries about your specific circumstances, our specialist Employment team are here to help.

Associated sectors / services

  • Employment law for employers
  • Employment law for employees

Authors

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):



    Article contributors

    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up

    Find out about Business

    Find out about Dispute Resolution

    Find out about Individuals & Families

    Find out about Real Estate

    We are Collyer Bristow - The law firm for those that
    value individuality, creativity and collaboration.

    Legal & Pricing info Regulatory InformationAccessibilitySitemapPricing and service information

    Listen to our latest podcast: Charity Rules Uncovered: US vs. UK (Part 2)

    Read our latest article: Gaming or gambling? The regulation of video game ‘loot boxes’

    Listen to our latest podcast: Charity Rules Uncovered: US vs. UK (Part 1)

    Read our latest article: Preventing sexual harassment: The ghost of Christmas party?

    Listen to our latest podcast: Budget Miniseries: Impacts on Families with US Connections (Part 3)

    ExpandNeed some help?Toggle

    < Back to menu

    I have an issue and need your help

    Scroll to see our A-Z list of expertise

    Get in touch

    Get in touch using our form below.



      Business Close
      Private Wealth Close
      Hot Topics Close