| HR & EMPLOYMENT LAW
Jackie le Poidevin, Editor-in-Chief, HR Adviser |
PM Brings Furlough Back from the Dead: Now You Need to Get Employees’ Consent to Go Back on the Scheme
Trick or treat? In his Halloween address to the nation, the Prime Minister gave us both: the shock of a second national lockdown but, as something of a sweetener for businesses, a return of the furlough scheme. Read on to learn more about the plans and for a template letter for obtaining employees’ agreement to remain on furlough.
Late on Friday 30 October, HMRC published a barrage of 11 guidance documents finally setting out the fine print of the Job Support Scheme (JSS), the successor to furlough. The following evening, the Prime Minister announced a 1-month extension to the furlough scheme, which had been due to end that day, to coincide with a new national lockdown.
The JSS has been postponed and is expected to replace furlough from December (the exact date has not yet been announced, although the intention is for lockdown to end on 2 December).
The extension to the furlough scheme will see more generous wage support than was available in September and October. The key points are that:
- The level of support will mirror the level available in August: for hours the employee does not work, the Government will pay 80% of wages up to a cap of £2,500 and you will only pay employer National Insurance Contributions (NICs) and pension contributions.
- Flexible furlough will continue to be allowed in addition to full-time furlough.
- To be eligible, employees must be on your PAYE payroll by 23:59 on 30 October 2020.
- There will be no gap in eligibility for support between the previously announced end date for furlough (31 October) and this extension.
Updated furlough guidance is available at: bit.ly/3eeAD9u (you’ll need to scroll down and keep checking for further updates). Early on Monday, the JSS guidance appeared to have been taken down, presumably because it, too, needs amending.
Good to Know: Staff don’t have to have been previously furloughed to go on the extended furlough scheme. Anyone with either ‘employee’ or ‘worker’ status will be eligible as long as you’ve made a Real Time Information (RTI) submission notifying payment for that employee to HMRC on or before 30 October 2020.
How to Get Employees’ Consent
Unless you’re going to top up employees’ wages to their normal level, you must get their agreement to be furloughed, as this will involve a pay cut. You may have had staff on furlough and obtained their consent to switch onto the JSS, only to have to get their agreement now not to go on the JSS after all and to stay on furlough.
Here’s some model wording you can use to email such employees. Make sure you keep a copy as HMRC may ask to see this. You may also need it as evidence to show an employment tribunal in the event of a dispute with the employee.
Covid-19: Extended Furlough Scheme Employee Letter
Dear [Name of Employee],
You have agreed to take part in JSS Open from [1] November 2020. However, the Government has now postponed this scheme and has extended the furlough scheme which you were on before.
I therefore need to ask you to agree to remain on furlough until December instead of moving onto JSS Open. You will continue to receive 80% of your pay (subject to the Government’s cap). This is higher than the amount available under JSS Open.
Please reply to this email using this wording: ‘I agree to remain on furlough until December on my existing furlough pay and hours.’ It is very important that you confirm this as soon as possible as the scheme requires us to have your agreement.
Yours Sincerely,
[Insert Name]
[Insert Business]
This letter can be downloaded from your Online Resource Centre. Go to: Downloads > Topics > COVID-19 HR and Employment Law.