Chancellor extends job furlough scheme until the end of June

Chancellor extends job furlough scheme until the end of June”

The United Kingdom has extended by a month until the end of June the furlough scheme for workers at companies hurt by the coronavirus outbreak, finance minister Rishi Sunak said.

"Having now had time to consider [the CJRS updates] unfortunately it would appear that the previously highlighted issues [for umbrella companies] remain", Professional Passport's Mr Temple reflected on LinkedIn yesterday.

For an employer to qualify for reimbursement in respect of furloughed employees, those employees originally had to be employed on 28 February 2020. This applies even if the employee is not reemployed until after March 19, 2020.

"Employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts". Furlough deadline UK: When is deadline to furlough staff? Additionally, employers are furloughing employees because they are unable to pay their full salary.

"[And] holiday pay also seems to accrue on the furloughed workers during this time which is a pure cost to most providers and probably makes the arrangements financially unworkable for most". " "This includes wages, past overtime, fees and compulsory commission payments" (meaning contractual commission payments)".

He added: "Where an umbrella operates with a salary equal to NMW and a discretionary bonus the bonus is excluded - in my opinion".

More news: How to Get More College Financial Aid During the Coronavirus Crisis

In particular, workers employed as of Feb 28th, but who were laid off or stopped working after then but pre-March 19th, are now eligible if the employer rehires and furloughs them.

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. There is no mention of how that SSP period comes to end, only that the furlough can start at the end of the SSP period.

"At last the government has confirmed that the CJRS is not limited to those employees who would otherwise be made redundant", reflected Brabners' employment head Nicholas Campbell.

Clarification on who can be furloughed: The Direction states that a condition to being furloughed is that the instruction from the employer to the employee to cease work for 21 days, is by reason of circumstances arising as a result of COVID-19.

DON'T MISSCan you take a second job while on furlough? They can apply to join the scheme from Monday. The updated guidance confirms that employers can furlough foreign national employees. Unfortunately, the Direction from HM Treasury is completely silent surrounding CJRS and annual leave, and the recent updates leave many questions.

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