I have already noted that I have major reservations about much of Rishi Sunaks coronavirus job retention scheme. As the day has gone on these have only grown. Right now I have seven questions that need answers:
1) What happens if an employer of laid off staff refuses to apply for them to be treated as furloughed? Does that mean they cannot get payment under this scheme?
2) What happens if the employer refuses to, or cannot, pay the 20% of pay not covered by the scheme? Does that mean the government will not pay their 80% part under this scheme?
3) What happens if the employer goes bust during the duration of this scheme? Does that mean those on the scheme then lose their benefits under it? Why should that happen if it does?
4) Who pays the employer's national insurance due on this pay? And if the employer, why? What if they say they can't afford it? Can the scheme not work in that case?
5) What happens to mandatory pension contributions whilst this arrangement is in force, and who pays the employer's part?
6) If an employee has lost their job since 1 March as a result of coronavirus why can't they just apply to HMRC direct for 80% of their old pay up to the ceiling you set? Wouldn't that be fairer? And, please note, given online PAYE failings HMRC do have all the information to confirm such claims.
7) People need answers to these questions now. When will you supply them?
NOTE ADDED 23.3.20
A great many questions have been asked about this scheme.
I understand people's concerns, but three matters arise.
First, nothing on this blog is personal advice.
Second, in every case I have had to offer same variation on the theme ‘wait and see' - we do not know the rules are as yet so no one knows the answers to questions raised, me included.
Third, I am sorry that I cannot keep providing variations in that same answer. I know people are worried - but I cannot answer questions on something unknown - so everyone has to wait for the rules and then seek their own advice, I am afraid, starting with your own employer.
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Hi, I started my new job on 6-3-20 after serving 4 weeks notice. As I was not on my new employers payroll by the 28-2-20 I have today been told I am not eligible for the 80% support. It is likely that my employers will be furloughing all staff in then next week. I have had no gap in employment for the last 14 years. Yet I will receive nothing? Is there anything I can do? When I accepted this job early Feb this was not expected at all?
Your best hope is to argue that the letter of offer was a contract – but I suggest you wait for the fine print and see, and hope you have an understanding employer
Ok thanks. They say HMRC are setting the rules. I’ll see what happens….
That is all anyone asking questions here can do
My Daughter started with a company in early February, her company has Furloughed her but says her 80% is only of what her last pay slip was, not a full month or her anticipated earnings is this correct?
No one knows
Although the announcement refers to the contract
You mean her contract?
When we see the rules check it
I was on six mths probationary contract which got extended to seven
They decided to terminate my employment .with lockdown evident can I claim any money til.i can get a job
Wait and see the rules
Scenario is, childcare business employing 40 staff and asked to stay open by PM to care for children of key workers. As numbers of children now around 50% of normal levels only 50% of staff needed.
Morally, is that business better furloughing half and keeping half the staff on full pay or trying to keep all staff actively involved by asking all to do 50% of normal hours ?
Current wording of Job Retention Scheme suggests the latter makes all staff ineligible for support ?
Why do so many have this same question?
If I start a second job in a supermarket will my 80% govt pay be affected ? Can I work ?
We do not know
Wait and see what the rules say
Hi my question is if your commission based and get the 80% wage backing do they asses your average wages over the past year or would it be your basic salary ?
We simply do not know as yet
Can an employer receive the government help for paying the wages in this critical moment and, at the same time, ask the employees to use all their annual leave?
We don’t know as yet
Hi
I started working for a company on 9th march, the company is looking at the 80% government pay option for employees. I’ve been told that as I wasn’t on they payrol on 28th feb I dont apply for this scheme. Is there any way that I can fight this ?
No one knows as yet
If I have a small limited company and pay myself on a paye scheme out of that company am I entitled to 80 percent of what I pay myself from the government ?
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
I am on a permanent contract of 4 hrs but work 12hrs a week, I am being furloughed, will I only be paid 80% of 4hrs? Thank you
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
Hi,
I am aged 61 & single, and live alone with no family support, and I work part-time (and nearby to my work place) as a employee (regular 20 hours per week on Wed, Thur,Fri) for a privately owned carehome for clients who have physical & learning difficulties at national minimum wage as a driver/maintenance person for the last 9 years.
I am in receipt of PIP and working tax credits (disability element) because I have a long term health condition (spinal cord damage) + neck/shoulder/back problems etc where I carry out light duties – I returned to the UK from Benidorn (holiday) on the 14th March, and it was advised/agreed by my employers that I take a 7 days off (isolate) as a precuationary matter given the Covid-19 situation, I am due back to work on the 25th March (tomorrow), but have since developed a heavy head cold.
Can my employer claim the 80% wage support for me from HMRC given the latest government announcement by Boris that effectively we are now in lockdown and should stay at home?…………what forms does my employer need to fill in? or can I claim from the government myself?
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
I have been told by my employer that because I am on ssp for next three weeks I will not be able to claim my 80 percent of wage when I return to work full time and signed of ssp because the meeting they had about the staff being laid off I did not manage to it I have a broken leg all best stuart
No one knows as yet, including your employer, although it is they who will decide for you in the end, it seems, but wait for the rules
When will the Coronavirus Job Retention Rules be published?
All we know is that they are being worked on
My partner was laid off without pay on the 19th and his employer are refusing to apply for the 80% grant. Can they do this?
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
I am an agency worker (NOT CONTRACTER) – PAYE
Will this furlough include agency workers. My agency pays me and invoices the company I am working for?
Do you think it will extend beyond the 3 months?
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
Hi
I work an office job, salaried and at the weekend I work, self employed on the railway doing work deemed essential.
My office job has been furloughed and I will be getting 80% of my salary.
Can I still work my self employed job at the weekend without affecting the 80% pay from my salaried job.
Note: my mortgage is based on having 2 jobs…
Thanks
Steve
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
I’m a key worker and my employment remains open. But I have vulnerable people at home that need to self isolate. I have nowhere else to live. Would I be eligible for the 80% wages covered scheme at all?
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules.
Hi
I started a new on on 15th of January 2020 as a Store Manager for a new home wear Store. On 26th February the owner said she could not afford to keep me off and was making me redundant. My contract states she should have given me a notice in writing with one weeks notice, this I never received. It was only verbal. I worked my last day of work on 29th of February so I was not paid a weeks notice either, as per contract. I am not unemployed and without pay. My question is: should my employer not seek for 80% payment for me also as I was still employed on 29th of February?? What do I do if she refuses? If she refuses am I entitled to the new government “redundancy” payment, and how do I go about claiming that?
I need to feed my family too
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
I am struck by just how many people have come to you for advice Richard.
It is indicative of just how poor Johnson & Co are doing.
I have come into work today and as a result of last night’s Government ‘advisory’, work is in complete pandemonium – know one knows what is going on. Incredible.
I am getting worn out by it to be honest
I am beginning to realise that recovering from coronavirus is not going to happen overnight
Can an employer enforce you to use up annual leave as opposed to just laying off ? I assume you can refuse and ask to be furloughed although that’s putting a noose around your neck for any potential future redundancies.
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
Hi, it is still all up in the air whether I am qualify for the gov 80% wage help with my employer as they put me on short term laid off without pay under probation period. Because of this I have taken on a part time job with my local supermarket. Would it affect my eligibility to claim for gov wage help if I take on a part-time role? Thanks.
Please see the comment at the foot of this post – we simply do not know as yet and will have to wait and see the detailed rules
I read this blog every day, but to be honest, I see little point as most questions are answered with “I dont know”
All I want to know is : my daughter has been employed with a contract for over 2 years with her employers, until the virus she felt secure in her job
Now this week she has been informed that as the company has had to repay all deposits they have received for future events will have to be repaid (Motorx and Go Cart Centre) the company will not be able to continue in business, so she has been informed that she will not be able to claim her 80% of her wages
She is a single mother and have three children of school age now living in a private rented house, what has she to do to get money, it seems the government have covered some area extremely well, whilst people like my daughter are left in a state of fear as to how they are going to feed their children, pay rent, council tax, gas and electric, this is an issue that is not going to go away, they need help today not in a months time
Barrie Rush
Barrie
I am really sorry – but I cannot answer what I do not know
But as the scheme stands, if there is no employer there is no pay
But we do not know how that will change
Richard
Afternoon,
I have 2 jobs, one full time and 1 part time, my full time job is a restaurant and my part time job is with a major retailer.
I am still working for the retailer but the restaurant is closed and they are seeking advice on the government grant.
Am I still eligible for the 80% if still working in my second job?
I suspect so but we simply do not know as yet – and I am as in the dark as you are
Hi Richard, I hope you are recovering well. My question is as a sole trader and employer who has informed my staff and all agreed to a furloughed situation, how do I operate their wages from next week? We closed the business today and they are paid weekly. What am I supposed to enter on the payroll next week, zero, normal pay or 80% of it? Do I enter nothing and do I pay them nothing until I have the grant? It’s only a couple of weeks to the end of PAYE year and won’t be able to continue payroll without submitting it. Sage offer no advice as do the HMRC. So my thinking is that I pay nothing and do nothing on the software, what are your thoughts?
I literally have no idea
I wish I had….but no one is saying anything
I suspect rioting will happen soon