Over the weekend, the Government has produced further guidance on the Coronavirus Job Retention scheme.
Key points include the following;
• Subject to any restriction in their employment contract, employees can start a new job when on furlough leave (meaning they could end up earning 80% of their old salary and 100% salary from a new job).
• In addition to basic salary, an employer can reclaim 80% of contractual commission owed to employees.
• Employers cannot however reclaim the value of non-monetary benefits such as a company car.
• Directors who are furloughed can still perform their statutory duties, but no other work.
• ‘Workers’ (as opposed to employees) who are paid through PAYE can also be furloughed and receive support through the scheme.
• Employees can be furloughed, brought back to work and then furloughed again multiple times however each period of furlough leave must last for a minimum of three weeks.
• An employer must notify the employee of their furlough status in writing and keep a record of the written notification for five years.
Further guidance can be found here
If you would like more advice on any of the issues raised above or in our Coronavirus FAQs (read here), please do not hesitate to get in touch with us.