Insights / News

A problem with the Coronavirus Job Retention Scheme

There is a problem with the numerous iterations of the Coronavirus Job Retention Scheme. You now need to get the employee to agree in writing that they will not work. Daniel Barnett looks at the implications for employers who have already started the scheme.

On 20 March 2020, the Chancellor Rishi Sunak MP announced as part of “an unprecedented package of measures” that businesses and their employees would be assisted by the Job Retention Scheme (the Scheme), thus bringing the word “furlough” into common usage.

The Scheme allows for a grant covering 80% of an employee’s usual monthly wage up to £2,500 per month plus Employer National Insurance contributions and pension contributions up to the level of the minimum automatic enrolment employer pension contribution. It is a temporary scheme and has just been extended to at least 4 months starting from 1 March 2020.

At the time of writing, we are expecting the online portal to open on 20 April 2020 and the first grants to be paid by HMRC to employers within 6 working days (so as early as 28 April).

Find Out More

It is fair to say that everyone appreciates that the Scheme is being introduced in difficult and time-pressured circumstances. This led to the bizarre situation whereby various iterations of the Guidance were released by HMRC before they even had any legal power to administer the Scheme. Daniel Barnett of OTC’s Employment Law Team has teamed up with Max Schofield, a specialist tax barrister to publish an article on the potential problems with the various iterations and how employers can judicially review HMRC or the Treasury.

Click here to read the full article: Claims against HMRC

If any solicitors, or employers, would like bespoke advice and assistance with pursuing a judicial review, possibly as part of group litigation, please contact our Employment Law Team’s Practice Director, Nicholas Levett at nicholas.levett@outertemple.com or call 020 7427 4908.

This article represents Daniel’s views and specific legal advice should always be sought.

Covid-19 17 Apr, 2020

Portfolio Builder

Select the expertise that you would like to download or add to the portfolio

Download    Add to portfolio   
Portfolio
Title Type CV Email

Remove All

Download


Click here to share this shortlist.
(It will expire after 30 days.)