Thank you for your continued interaction with our staff update page. This update is correct as of 1 May 2020. Please continue to view the company website to obtain the most recent employee updates.
As you are aware guidance is changing regularly so we wanted to provide guidance on the latest information regarding the Coronavirus Job Retention Scheme (CJRS).
Whilst the original guidance referred to furloughing as an alternative to redundancy, the guidance now places the furloughing of employees as a response to business operations severely affected by COVID-19, opening the scheme up to a wider group of employees.
The temporary nature of the scheme has been extended by one month, the scheme is now in place for four months, beginning 1 March 2020. At present the scheme will be terminated at the end of June 2020, however this could be extended again.
We are aware that there has been some confusion regarding annual leave for those on Furlough Leave. It is likely that the published guidance on the CJRS will be further updated and that additional guidance or legislation may be published, clarifying aspects of the scheme in relation to annual leave. Therefore, once we receive definitive guidance on the matter, and liaise with our specialist advisers, we will communicate how annual leave will be calculated. Statutory Sick Pay (SSP)
Employees placed on furlough do not qualify for SSP, however an employee on SSP or shielding in line with government guidance may be placed on furlough, in which case the employee would be classified as a furloughed employee and entitled to furlough pay.
If an employee started unpaid leave, due to the effect of COVID-19 after 28 February 2020, they can be placed on furlough instead and receive at least 80% of their regular wages, up to the monthly cap of £2500. If an employee went on unpaid leave on or before 28 February, they cannot be placed on furlough until the date on which it was agreed they would return from unpaid leave. An employee is either on an arranged period of unpaid leave or on ‘furlough’, they can’t be on both at the same time. An employer can only claim through the Scheme for an employee who has been placed on ‘furlough’.
Training – does that count as work?
Furloughed employees can engage in training, as long as in undertaking the training the employee does not provide services to, or generate revenue for, or on behalf of their organisation or a linked or associated organisation.
Where training is undertaken by furloughed employees, at the request of their employer, they are entitled to be paid at least their appropriate national minimum wage for this time. Where employees are placed on furlough, and the above training is not requested there is no requirement to meet the NMW or NLW as the employees are on a leave of absence.
Agreement to Furlough – records and calculations to be kept for five years
Recent guidance, dated 20 April 2020 states the following:
- Employers must confirm in writing to their employee that they have been furloughed
- If done in a way that is consistent with employment law, that consent is valid for the purposes of claiming the CJRS
- A record of this communication must be kept for five years.
Your welfare and safety are paramount at this time so please follow all government guidance in relation to Covid-19/Coronavirus.
If you have any queries about this notice, please contact HR@malhotragroup.co.uk
This update is correct as of 1 May 2020. Please keep in touch with HR in relation to further updates.