Employer furlough schemes
Furlough means temporary leave of absence. There is nothing to stop an employer seeking to agree a temporary leave of absence – with or without pay – with its workforce.
This could not be forced on an employee without significant risk. Without agreement, this would need fair selection and consultation – more on that later.
Related FAQs
The key factors for determining status for employment and tax purposes are generally the same. However there are some cases that highlight the different approaches taken by employment tribunals and HMRC when determining status. The important thing to consider for IR35 purposes is that being deemed employed for tax purposes does not mean a contractor is ’employed’. PSC’s can still be used in moving forward but there are likely to be discussions on the commercial aspects of the contractor arrangement. Employment status for tax purposes is likely to come at a cost for both parties.
As above, employees must not leave their home unless they have a ‘reasonable excuse’.
The Competition and Markets Authority (CMA) has issued a number of guidance documents about the application of competition law rules during the coronavirus outbreak. In general, the competition law rules are being relaxed in very specific circumstances.
Yes: The Cabinet Office has published a number of Procurement Policy Notes to provide instructions to Public Bodies to enable payments to continue to be made to at risk suppliers (and their supply chains) who have been affected by Covid-19. Copies of this guidance can be obtained from the Government website at: https://www.gov.uk/government/publications/procurement-policy-note-0220-supplier-relief-due-to-covid-19
No. The Home Office has confirmed that sponsors do not need to report sponsored workers as working from home, where this is directly related to the coronavirus outbreak.
However any UK employers who sponsor overseas workers, should also ensure that they remain compliant with their other sponsor licence duties, which includes reporting any change to an employee’s salary and duties.