HMRC have published a further update on the employment guidelines on furlough, Coronavirus Job Retention Scheme, as follows:
Employees can start a new job when on furlough, by joining their new employer and continuing with furlough leave without a break.
An employer can reclaim 80% of contractual commission back from HMRC, as well as basic salary. This is good news for car salesmen and estate agents. But it can only be referring to the commission from past sales as the furloughed employees cannot be completing new sales when on furlough.
The 80% does not include non-monetary benefits (e.g. the value of health insurance or a car).
Employees can be furloughed multiple times, i.e. they can be furloughed, brought back to work, then re-furloughed, subject to each furlough period being at least three weeks.
Company directors can be furloughed. They can still perform their statutory duties, but not other work for the company. Where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.
THSP’s employment law team are happy to discuss these matters. Phone 03456 122144 or complete a contact form to request a consultation.
Director, Employment Law