Extended Coronavirus Job Retention Scheme Guidance Amended
13th November, 2020
On 11 November 2020, the Government updated their guidance for the extended Coronavirus Job Retention Scheme to clarify the rules of the scheme up to the new end date of 31 March 2021.
Further details can be found in our article here.
Despite only publishing the guidance two days ago, the Government have already amended it in respect of furlough eligibility for employees serving notice and errors relating to the expiry of fixed-term contracts and furlough eligibility for employees whose employment has transferred under TUPE.
Employees serving notice
The government has now clarified that for CJRS “claim periods starting on or after 1 December 2020, you cannot claim for any days on or after 1 December 2020 during which the furloughed employee was serving a contractual or statutory notice period for the employer (this includes people service notice of retirement or resignation).”
For claim periods relating to November 2020, you can claim for a furloughed employee who is serving a statutory notice period – but the guidance does not state anything about contractual notice periods.
Expiry of fixed term contract
In the previously published guidance, there was an inconsistency between documents regarding the relevant date for rehiring employees whose fixed-term contract had expired after that date. Some documents stated 23 September 2020 and other 23 October 2020.
It has now been confirmed that if an employee’s fixed-term contract expired on or after 23 September 2020, they can be re-employed and claimed for under the CJRS scheme, as long as they were employed by the employer on 23 September 2020 and the employer made a PAYE RTI submission to HMRC between 20 March 2020 and 30 October 2020.
Employees whose employment has been transferred under TUPE
The previously published guidance stated that employees who TUPE transfer into a business must have “been employed by their prior employer on or before 30 October 2020 and transferred from them to their new employer on or before 1 September 2020″ – which clearly does not read correctly!
The updated guidance now states that “the employees being claimed for should have been:
- transferred from their old employer to their new employer on or after 1 September 2020
- employed by either their old employer or new employer on 30 October 2020
- on a PAYE Real Time Information (RTI) submission to HMRC, by their old or new employer between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.”
Further details relating to the extended CJRS and the eligibility criteria are available on the government website on the link set out at the top of this article. If you require further information about the CJRS or any other Employment Law related matter please contact a member of our Employment Team.
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