The government issued updated and more detailed guidance on the Coronavirus Job Retention Scheme on 4 April 2020.
The full guidance can be accessed here https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
Some of the important clarification relate to the following:
Office Holders and Company Directors
'As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme. Company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed. 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.
Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, for instance, they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.
This also applies to salaried individuals who are directors of their own personal service company (PSC).'
Record Keeping
'To be eligible for the grant employers must confirm in writing to their employee confirming that they have been furloughed. A record of this communication must be kept for five years.'
Past Overtime, Commission, Bonuses and Non-cash Payments
'You can claim for any regular payments you are obliged to pay your employees. This includes wages, past overtime, fees and compulsory commission payments. However, discretionary bonus (including tips) and commission payments and non-cash payments should be excluded.'
Working for a Different Employer
'If contractually allowed, your employees are permitted to work for another employer whilst you have placed them on furlough.'
The above extracts only give a flavour of and in some cases changes from the initial guidance, please don't make any decisions without reading the full guidance Government Guidance or taking professional advice. We at McCleary & Company will be happy to discuss and advise on your individual circumstances.
