Inca COVID-19 Update 8: Furloughing Employees – Updated Information
7th April 2020
Furloughing Employees – Updated Information
The government has updated some of its guidance for furloughing employees under the Job Retention Scheme.
Below, we set out answers to some of the key questions:
Q: Can my employee undertake voluntary work while furloughed?
Yes, but they can’t undertake any voluntary work which generates revenue for your business.
Q: Can an employee work for someone else while furloughed?
Yes, if it’s allowed in your employment contract. If it’s not specified, you should consult with your HR adviser about temporarily waiving the condition. You’ll need to document any action you take.
Q: What work are directors allowed to do while furloughed?
You are allowed to fulfil your statutory obligations, e.g. filing your VAT returns or accounts. You are not allowed to undertake revenue generating or promotional activities.
Q: If I reduce the hours an employee works, can I furlough them for the remainder?
No – it’s all or nothing.
Q: I have an employee who also works for another business. Is the furloughing connected?
No – each business/employer will need to decide for themselves whether to furlough the employee.
Q: Are bonuses or commissions included in the furlough claim?
You can claim for any regular payments you are obliged to make to employees. These can include overtime, fees and compulsory commission, but not discretionary bonuses or taxable benefits in kind
You can find out more about claiming for your employees’ wages through the Coronavirus Job Retention Scheme here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
How Are You Coping with Life in Lockdown?
These are stressful times for all of us. As well as making sure we get our daily physical exercise, it’s also important we take care of our mental health. Inca client Rebecca Johns of Rebecca Johns Therapy has kindly agreed to let us share her tips on how to look after our mental health while in isolation. You can download her free guide Surviving the Madness here: https://www.rebeccajohnstherapy.com/resources?fbclid=IwAR22YvC-ZEm1MCtzov_cIyS-KEgdnbycVtyzcmvYR9yVc1F8KL4Kqb04FSc
We hope you find this information useful. Please feel free to share it with other business owners in your contact sphere.
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