BS: Furlough update

Subject: BS: Furlough update
From: Bonzo3legs
Date: 08 Feb 21 - 04:40 AM

Got kids? If your employee is unable to work because they are ‘caring for children who are at home as a result of school and childcare facilities closing’ then they can be furloughed. This was confirmed by HMRC on 5 January 2021.

The Coronavirus Job Retention Scheme (CJRS) has been extended until 30 April 2021. This was announced late last year and confirmed by the 5th Treasury Direction which was issued on 26 January 2021.
Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500 per month. This cap is proportional to the hours not worked. Employers will not be required to contribute or top-up for the hours not worked.

The government will meet the pay of the employee up to this cap, but the employer remains responsible for meeting the pension and national insurance contributions (NIC) costs. The employer will, of course, pay the employee for the hours actually worked in the normal way.
This means that the extended CJRS scheme is more generous than it was in October and therefore it will mirror the terms of the CJRS for August 2020.

To be eligible under this extension, employees must be on an employer’s PAYE payroll by 23:59 30 October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30 October 2020.
The employee does not need to have been furloughed previously. This is a significant change to the rules.

The grant must be paid to the employee in full.

The reference to pay and the ‘usual hours’ will differ depending on whether the employee has been furloughed previously under the original CJRS or not.

Subject: RE: BS: Furlough update
From: Steve Shaw
Date: 08 Feb 21 - 04:54 AM

"Got kids? If your employee is unable to work because they are ‘caring for children who are at home as a result of school and childcare facilities closing’ then they can be furloughed. This was confirmed by HMRC on 5 January 2021."

Without going into details of affected people, I've encountered some resistance to this from employees, who have to ask their employer to be furloughed. It could be that you're fearful of being first in line to be later made redundant if you take this up, in the event of the company having to contract as a result of the impact of the disease. Those who kept their heads down and muddled through somehow with their kids would be seen as braver and more loyal to the firm, if you see what I mean. So I've seen reluctance. Dunno what you could do about it...

Subject: RE: BS: Furlough update
From: Bonzo3legs
Date: 08 Feb 21 - 05:01 AM

Yes you are right.

Subject: RE: BS: Furlough update
From: DMcG
Date: 08 Feb 21 - 05:38 AM

My daughter had a somewhat incomprehensible experience of furlough. She took a temporary job at a company to provide maternity cover about 18 months ago. Because she did a good job, the temporary contract was extended again and again until December last year. They then told her they wanted to put her on furlough, topped up to 100% of the salary, but they did not want her to work at all - in line with the furlough rules. In April, they intended to offer her a permanent job. In the meantime, someone in the office was badly under-performing (failing to turn up when expected, not doing the work, etc), so they anticipated terminating that person sometime in the first quarter of 2021, thus having a place for my daughter to fill.

She has taken a permanent job elsewhere. Sitting round on furlough doing nothing does not suit her temperament. But it does show that, while it is true some people are very reluctant to ask to be furloughed, some firms are taking advantage of it in ways they perhaps should not.

Subject: RE: BS: Furlough update
From: Steve Shaw
Date: 08 Feb 21 - 06:20 AM

I'm afraid that unintended consequences abound during this crisis under this government.

Subject: RE: BS: Furlough update
From: Bonzo3legs
Date: 08 Feb 21 - 06:33 AM

I'm sure that a certain type of person would take advantage of the furlough system whatever the government. HMRC now have a compliance department working on suspected fraudulent claims.