Updated Guidance on the Coronavirus Job Retention Scheme

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What’s happening?

The Government has published updated guidance relating to the Coronavirus Job Retention Scheme. This provides further guidance on the rules relating to ‘Furlough Leave’ and ‘Furlough Pay’. For further information click here.

Why is this important?

If you have placed, or you are intending to place any of your employees on ‘Furlough Leave’ in order to recover wage costs from the government under the Coronavirus Business Retention Scheme, you need to ensure you are eligible for the Government grant. If not, you may be agreeing to pay these sums to your employees with no scope to recover the costs.

Non- payment of the wages that your employee is entitled to under his or her contract of employment will give rise to grounds for several claims. However, paying out money that you do not have is likely to be catastrophic to your business. As a result, getting it right is vital.

What should you do?

Read it and make sure you follow the guidance.

From an employment law perspective, it makes clear that your employees must agree to be placed on ‘Furlough Leave’.

Always remember that your employees are entitled to be paid the salary/wages set out in their contract of employment. The question is – what does that contract say?

If you need any further guidance, please contact our experienced team of employment solicitors on 0800 2800 421 or email Employment.Alert@trethowans.com to find out how we can help.