Insights / News
Insights / News
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).
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