The Government has published another update to its guidance on the Coronavirus Job Retention Scheme. Here is a summary of the update:
1. Employers can reclaim 80% of compulsory (which we assume to mean contractual) commission back from HMRC, as well as basic salary. However, it can only be referring to the Commission from past sales, as the furloughed employees cannot be completing new sales when on furlough.
2. Employers can reclaim 80% of fees (fees are not defined) from HMRC. The previous guidance said this was not allowed.
3. The 80% does not include non-monetary benefits. So, for example, the value of health insurance or a car.
4. Company Directors can be furloughed. They are still allowed to perform their statutory duties, but not other work for the Company. The guidance does not say what statutory duties actually cover for Company Directors.
5. Employees are allowed to start a new job when on furlough. This means they could end up earning 80% of their old salary and also have a new salary. Whilst this was not prohibited in the previous guidance, the new guidance expressly allows it. The guidance does make it clear that this must be allowed under the old employment contract, but it is possible for the old employer to waive it.
6. Employees can be furloughed multiple times. So that means they can be furloughed, then brought back to work and then re furloughed. This is all subject to each furlough period being at least three weeks.
7. Employers must notify employees of their furlough status in writing. Note that the previous guidance did not require it to be in writing. The employer should keep the record of that written notification for five years.
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