Employment Alert- Coronavirus Job Retention Scheme Guidance Published

27 Mar 2020

Coronavirus Job Retention Scheme Guidance Published

What’s happening?

The government has published guidance on how to recover 80% of wage costs (up to £2500) in respect of the newly ‘Furloughed’ Employees.

Click here to visit the Gov.uk website for more information.

It confirms who is eligible and in what circumstances employers can recover these costs.

Why is this important?

If you fail to comply with the rules, you are unlikely to recover the money or, worse still, be liable for prosecution.

What should you do?

Most importantly – any change to reduce the pay of employees to ‘Furlough pay’ must be authorised by the employment contract – otherwise it is likely to be a breach of contract.

Before agreeing to pay ‘Furlough pay’, check that the relevant employee is eligible. If they are not, you will be contractually obliged to pay the sums to your employee without being able to recover them from the government.

Do not under any circumstances allow your employee to work on Furlough leave.

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.

Author

Kathryn Evans

Partner