Chancellor Sunak has published a second Treasury direction for the operation of the coronavirus job retention scheme (CJRS). The direction, dated 20 May (but published on 22 May), modifies the CJRS to reflect the extension of the scheme and to address inconsistencies between the 15 April Treasury direction and HMRC’s guidance. Key changes include:
the duration of the CJRS is extended by one month, from 31 May to 30 June, suggesting that a further direction (or directions) will be required for the period from 1 July to 31 October;
clarification around how the employer and employee must agree that the employee is on furlough, including by way of collective agreement, noting that the employer can confirm any agreement by email;
further detail on study or training that can be undertaken by employees while on furlough, and on limited work that can be carried out for specified purposes (exercising duties as a trustee or manager of a pension scheme); and
expanded provisions covering TUPE transfers, including changes to ensure employees transferred on and after 28 February to a new employer are covered by the scheme.
Chancellor Sunak has published a second Treasury direction for the operation of the coronavirus job retention scheme (CJRS). The direction, dated 20 May (but published on 22 May), modifies the CJRS to reflect the extension of the scheme and to address inconsistencies between the 15 April Treasury direction and HMRC’s guidance. Key changes include:
the duration of the CJRS is extended by one month, from 31 May to 30 June, suggesting that a further direction (or directions) will be required for the period from 1 July to 31 October;
clarification around how the employer and employee must agree that the employee is on furlough, including by way of collective agreement, noting that the employer can confirm any agreement by email;
further detail on study or training that can be undertaken by employees while on furlough, and on limited work that can be carried out for specified purposes (exercising duties as a trustee or manager of a pension scheme); and
expanded provisions covering TUPE transfers, including changes to ensure employees transferred on and after 28 February to a new employer are covered by the scheme.
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