Coronavirus - Job Retention Scheme - Guidance for EMPLOYERS - 27/3/2020

COVID Virus

Guidance for Employers: Coronavirus Job Retention Scheme (JRS)

Further Guidance on how this scheme will work has been published here:

Guidance on Job Retention Scheme - published 26.3.2020

Here is a summary of the key points that have been clarified by this publication:

Employment Law, and equality and discrimination laws still apply.

Employees you can claim for

Furloughed employees on your PAYE payroll on 28 February 2020.

  • Full-time or part-time employees
  • Employees on agency contracts (who are not working)
  • Employees on flexible or xero-hour contracts
  • Employees made redundant after 28 February can be rehired and included
  • Employees on unpaid leave can be included, and put on furlough
  • Employees who are shielding can be furloughed

Employees you cannot claim for

  • Employees on reduced hours or reduced pay
  • Employees hired after 28 February
  • Employees on unpaid leave before 28 February

Sick Leave, Self-Isolating or Shielding Employees

  • Employees on sick leave or self-isolating should get SSP.
  • After period of sickness they can be furloughed.
  • Employees who are shielding can be furloughed

More than one Job

  • Furloughing and claiming 80% of salary and wages cap applies for each job.

Volunteering and Training

  • Employees can volunteer or voluntarily complete online training
  • If you require them to complete training, then you must pay them at or above National Minimum Wage (which may be more than the 80%) for the time spent training.

Maternity Leave, adoption, paternity and shared parental pay

  • Please check detailed guidance

How much can you claim?

The grant will cover:

  • the lower of 80% of an employee’s regular wage or £2,500 per month
  • plus the associated Employer National Insurance contributions
  • plus minimum automatic enrolment employer pension contributions
  • Fees, commission and bonuses should not be included.

How much to pay your employees

You must pay your employee AT LEAST the lower of 80% of their regular wage or £2,500 per month. You can pay them more.

How to work out “regular wage”

Fulltime or part-time salaried employees

  • Use employee’s actual salary for calculation as at 28/2/20
  • Fees, commission and bonuses should not be included.

Employees whose pay varies

Use the higher or:

  • Either average monthly earnings over 2019-2020
  • Or the same month the previous year

If the employee has worked for you for less than a year, then average over the period they have been working and pro-rata to get a monthly figure. If they started in Feb 20, use a pro rata basis on earnings to date.

National Minimum Wage and National Living Wage

These only apply for paid work, not for furloughed workers.

What you will need to claim

  • your ePAYE reference number
  • the number of employees being furloughed
  • the claim period (start and end date)
  • amount claimed (per the minimum length of furloughing of 3 weeks)
  • your bank account number and sort code
  • your contact name
  • your phone number

HMRC will retain the right to retrospectively audit all aspects of your claim, so keep records of how you have calculated the figure.

When to Claim

  • You can only submit one claim at least every 3 weeks (not clear what this means…)
  • Backdate the first claim to 1st March
  • Claim when you run your payroll, or in advance of an imminent payroll

Money will be paid straight into your bank account.

Rights for furloughed employees

Employees have the same rights as they did previously, including SSP entitlement, maternity rights, other parental rights, rights against unfair dismissal and to redundancy payments.

Tax Treatment of grants

  • Include Grant as Income
  • Treat Employment Costs as normal

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