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Job Retention Scheme - Treasury Direction Part II
26 May 2020 Julia Ascott, Employment Taxes Specialist
Last Friday (22 May) the government published a new Treasury Direction for the Job Retention Scheme, you can access the Direction here. It specifically relates to the extension of the scheme and various modifications to the original Direction.
To summarise the key points:
The Direction no longer appears to require the employee to have agreed to be furloughed in writing. Whilst employee agreement will still be required, the new Direction confirms that such agreement must be made in writing ‘or confirmed’ in writing by the employer (this includes emails). The agreements must set out ‘the main terms and conditions upon which the employee will cease all work’.
An employer and employee might be able to agree to end a period of SSP in order to start furlough, although further guidance is required – this change should cover the situation of shielding employees not able to work at home.
Non-discretionary payments (overtime, fees and commissions and payments ‘made in recognition of the employee undertaking additional or exceptional responsibilities’) can potentially count as ‘regular pay’.
The definition of ‘regular pay’ has been altered and the wording ‘not conditional on any matter’ has been removed.
The relevant date for TUPE transfers has been changed from 19 March to 28 February so claims can be made for employees who transferred after 28 February even if there was no RTI submission before 19 March.
More detail is included on what study and training is permitted whilst employees are on furlough.
The BUFDG explanatory document will be updated once further guidance (expected this week) is published.
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