I can say with absolute confidence that this isn’t the last post I’ll write on the subject of the Coronavirus Job Retention Scheme (my previous posts can be found under “furlough leave” in the “categories” section in the margin). With details of a revised scheme due to be announced by the end of the month, there will no doubt be more to say about the scheme that will be in place for the months of August, September and October 2020.
In the meantime there have been further developments and clarifications that are the subject of this week’s blog.
Unpaid leave and furlough
Employees cannot be on unpaid leave and furloughed simultaneously, and where a period of unpaid leave started before 1 March and the envisaged end date is after the end of the scheme, that employee cannot be furloughed.
Pension scheme trustees
There is now a provision that allows pension scheme trustees to undertake their duties whilst on furlough leave without this counting as work.
Training activities whilst on furlough leave
Employees on furlough leave can now study or undertake training even if not directly relevant to their role. Its purpose can be to generally improve their effectiveness at work provided it does not contribute to business activities, generate income or profit, or significantly contribute to the production of goods or services.
Sick pay
From 6 April Statutory Sick Pay (“SSP”) increased to £95.85 per week (previously £94.25) for up to 28 weeks. The Statutory Sick Pay (Coronavirus) (Suspension of Waiting Days and General Amendment) Regulations 2020 removed the previous 3 day waiting period for payment of SSP for employees whose period of sick leave is related to Covid-19 (backdated to 13 March).
On 17 March the Chancellor announced that the government will reimburse employers with fewer than 250 employees for any Covid-19 related SSP for the first two weeks of absence, backdated to 14 March. The Coronavirus Statutory Sick Pay Rebate Scheme was launched on 26 May and HMRC has issued guidance on how to claim.
The portal through which claims can be made can be found here.
Remember that in these circumstances payment of SSP applies to employees whose absence is due to Covid-19 symptoms whether they’ve been diagnosed or not.
Normally employees can self-certify their absence for up to 7 calendar days; thereafter a doctor’s Fit Note is required. The government are urging employers to accept an online isolation note which can be used to provide evidence of the need to self-isolate when someone is absent for more than 7 days due to having Covid-19 symptoms or is self-isolating for 14 days because they live with someone who has symptoms.
If an employee becomes sick whilst on furlough leave the most recent guidance clarifies that it’s up to the employer to decide whether to move them to SSP or to keep them on furlough. If the employee remains on furlough the employer can continue to make a claim through the furlough scheme in the normal way. If the employee is moved to SSP the employer can no longer make a claim through the furlough scheme and will have to pay the SSP.
Employees’ consent to be furloughed
There has been plenty of confusion on this subject caused by conflicting guidance. The most recent guidance has now clarified that employees do not need an employee’s written consent however there must be a record confirming consent. So, employers don’t need employees to sign anything but there must be a written record, such as a letter or email from the employer to the employee, which confirms that the employee has consented to be furloughed. There is also a requirement that the agreement should specify the main terms and conditions upon which the employee will stop working. The Treasury Direction (as amended) now reflects the position in the guidance that agreement to furlough can be express or implied and can be made by way of a collective agreement.
These written records should be retained for a period of 5 years.
Extension to the Coronavirus Job Retention Scheme
As I said at the outset, there’s more to come but it’s worth reminding you in the meantime that the current scheme will remain in place until the end of July 2020; thereafter a revised scheme will be in place until the end of October 2020. Whilst it will be important to plan for the implementation of the revised scheme (particularly if you are “topping up” employees’ salaries), details of the scheme that will be in place for August, September and October will be released by the end of May. It’ s anticipated that employers will be expected to contribute to the revised scheme.