Following the recent announcement that the Coronavirus Job Retention Scheme (generally known as the “furlough” scheme) will be extended until 31 March 2021 – despite original plans to end it in 2020 – the UK government has now published the rules governing furlough claims. These are set out in its fourth Treasury Direction, which forms the legal framework for the scheme.
Although the new Direction has extended the length of the scheme until 31 March 2021, it has only set out how the scheme will operate until 31 January 2021. At this point a further Treasury Direction will be published covering how the scheme will operate (most likely on a less generous basis) for the remaining two months. The Direction also withdrew the Coronavirus Job Retention Bonus scheme that was to start on 1 November 2020.
Employers should note the key changes to the way in which the furlough scheme will operate: In order to make a claim, employers will have to consent to HMRC publishing information about the company including its name and a “reasonable indication” of the amount of pay claimed. An exception to publishing this information will only be made if employers can show publication would expose their workforce to “serious risk of violence or intimidation”. This is an effort to keep employers accountable for the amount of furlough pay they claim and to stop employers (for fear of potential reputational damage) from claiming furlough pay when they are not suffering any financial losses due to the pandemic.
Please contact the Fox Williams team for any questions relating to the new rules or for assistance with updating or drafting furlough agreements.
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