The Government’s announcement that it would seek to protect employment and avoid redundancies during the COVID-19 crisis, through the introduction of the CJRS has been welcomed by employers and employees alike. However, as a new employment concept which has been brought in with limited guidance, it has raised a number of queries as to how the CJRS works in practice.  

Under which conditions can employers use the scheme?

Under the current arrangements, employers who have a UK payroll have the ability to furlough eligible staff during the period running from 1 March 2020 to 31 May 2020.  Some of the basic features include:

• the member of staff must have been on the payroll on 28 February 2020
• it must be for a three week minimum period
• the Government will fund a grant of up to 80% of the employee’s wages, up to a maximum of £2,500 per month
• no paid work for the employer should be undertaken by the furloughed employee during furlough leave (although he or she can undertake training or volunteering).

Employers are required to pay the employees and then reclaim payment from HMRC. This will be done via an online portal, which is currently being set up, and HMRC have announced that they expect the scheme to be operational by the end of April.

The original guidance on the CJRS was updated on 4 April 2020, and answers some of the questions surrounding the scheme, although there are many areas which remain unclear, such as whether an employee can take annual leave whilst on furlough leave. One of the key questions left unanswered by the original guidance has now been resolved, and the Government has confirmed that employees who have been furloughed by one employer are free to take up paid employment with another employer, provided that their contract of employment with the first employer does not prevent this. The updated guidance also clarifies that employees who are shielding because they are vulnerable or because they have caring responsibilities can be furloughed, although they do not have an entitlement to SSP.

These clarifications will be particularly welcome for employers in the housing and social care sectors, who have a number of employees who are unable to work from home but cannot attend their usual workplace, and also who are experiencing a shortage of staff due to high absence levels and increased demand.

We have produced a set of FAQs to aid employers across all sectors including the social housing sector who are considering furlough leave, which can be found here.

How Capsticks can help

With the combined expertise of our housing and employment law specialists, we can offer you tailored advice on a full range of employment and HR advice from your unique perspective as a housing association. We advise on a full range of issues from recruitment and appointment, drafting and reviewing employment contracts and HR policies, reorganisation and restructuring, resolving workforce issues and handling the most complex claims in employment tribunals.

If you need support on how the furlough scheme could work for your organisation, or any other employment law advice, please contact Sarah Parkinson, Raj Chahal or Eleanor Rhodes.