On 30 April, HMRC updated its guidance for employers on the Coronavirus Job Retention Scheme, also known as the Furlough Scheme, and other associated guidance documents.
The update confirms that employees, regardless of whether they are union representatives, can perform duties and activities related to individual or collective representation of employees or other workers while furloughed, provided that they don’t provide services to, or generate revenue for or on behalf of, the employer.
The latest update also stipulates the following:
- Company directors with an annual pay period are covered by the scheme
- New employers can make claims under the scheme in respect of employees of a previous business who TUPE transferred after 28 February 2020
- A period of furlough can be extended by agreement
HMRC has also provided an update to the employee guidance, the guidance on calculating 80% of an employee’s wages, and the guidance on how to claim.
A number of tricky issues remain open to debate around annual leave and notice pay whilst on furlough and should you be grappling with any of these problems please do contact the team.
