Search

How can we help?

Icon

Furlough Update: Government change calculation date to 19th March

There has been a total of four iterations of the Government’s guidance surrounding its Coronavirus Job Retention Scheme. The fourth was released yesterday. It contained a number of important changes and updates. The most notable of which was that the Furlough qualifying date was changed from the 28th February 2020 to the 19th March 2020.

Changing this date widens the scope for employers to claim for their more recent recruits; those who may have previously fallen outside the scope of the scheme because, for example, they changed jobs between the 28th February and 19th March.  Crucially, employers will now be able to furlough employees that were on the payroll on or prior to 19th March 2020 provided they were notified to HMRC on an RTI Submission on or before 19th March 2020.

The published update went on to confirm that those who were employed but ceased working for their employer after 28th February 2020 can be re-employed and placed on furlough. However, this will only apply as long as the employee was on your payroll as at 28th February and had been notified to HMRC via an RTI submission on or before 28th February 2020. It was also confirmed that those who started unpaid leave after 28th February 2020 could be placed on furlough, but not until the date on which it was agreed they would return from unpaid leave.

The most notable of which was that the Furlough qualifying date was changed from the 28th February 2020 to the 19th March 2020.

Finally, the guidance now states that the 80% pay calculation should be based on the employee’s salary, as in their last pay period prior to 19th March 2020 (theoretically this should be the same as the figure on 28th February if paid monthly at the end of each month).  Nevertheless, if, based on previous HMRC guidance, you have calculated your claim based on the employee’s salary as at 28th February 2020 (and this differs from their salary in their last pay period prior to 19th March 2020) you can choose to still use this calculation for your first claim.

This is a reminder that the we are all in unchartered territory and will need to adapt to new guidance where possible. Clearly, the government can and will change its guidance and advice periodically.

Do not hesitate to get in contact with our Employment Team if you have any questions or would like to discuss the guidance in more detail.

About this article

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 10 April 2024
  • Employment

New Guidance: Confidence to Recruit

The new Government guide in collaboration with the CIPD aims to give employers the confidence to recruit its workforce from a wider range of people including those who may have been overlooked in the past as a problem rather than an asset.

art
  • 03 April 2024
  • Employment

FAQ’s on the new Carer’s Leave Act

Beginning on 6 April 2024, the Carer’s Leave Act comes into force, meaning carers are now entitled to request 1 week’s unpaid leave to care for their dependants.

art
  • 26 March 2024
  • Employment

Navigating Neuroinclusion: A Guide for Employers

Over the past few years, we have seen a marked rise in awareness of neurodiversity, as well as campaigns for awareness and inclusion in the workplace for neurodiverse employees.

Pub
  • 21 March 2024
  • Employment

TUPE Podcast Series: Who Transfers?

In this fifth podcast in our TUPE Podcast Series, Amanda Glover will be focusing on ‘who transfers’ under TUPE. Looking at the definition of ‘employee’ under TUPE legislation and the tests that apply in deciding if those employees transfer.

art
  • 20 March 2024
  • Employment

Changes to Employment Laws from April 2024 – are you ready?

There’s a large number of employment law changes coming in April which are set to shake up the workplace. It’s crucial for employers to stay informed and prepared.

art
  • 19 March 2024
  • Employment

Instant Messaging in the Workplace: Factors to be aware of

Workplaces have changed beyond recognition in the four years since the first COVID-19 lockdowns. This anniversary represents an opportunity to look back at how workplaces have changed in that period, from the increased use of flexible and hybrid working, to the continuing and significant integration of more technology in office-based work.