How do I bring an employee with a visa off furlough?
Employees with visas should be treated consistently with the wider workforce. When their furlough leave ends, they should return to work and their pay should be reinstated. If you agree a pay cut or reduction in working hours, you need to ensure that sponsored workers are still earning above the minimum salary for their role and working in excess of the minimum number of hours (see above).
The flexible furlough scheme is now in place and can be used for employees who have previously been furloughed for a consecutive period of at least three weeks. The flexible furlough scheme remains in place until 31 October 2020.
Related FAQs
The Chancellor announced:
- A new “job retention bonus” for employers to access for furloughed employees subject to certain conditions being met – see below for more information.
- A “Kickstart scheme” which will directly pay employers to create jobs for any 16-24 year old at risk of long-term unemployment.
- Incentives for employers to take on apprentices.
As a result of the CJRS being extended, the Job Retention Bonus will no longer be paid in February 2021.
At 10am on the 21st July, we hosted the fourth of our “in conversation…” webinars, this time featuring the ninth largest private bank in the world, Swiss-based Julius Baer. Ward Hadaway partner Emma Digby once again lead the conversation, this time with Luke Downes and Darren Hirst from their investment and relationship teams on “Market outlooks – the before, during and after”. They were joined by Andrew Evans from our private client team to feed in his perspective. This will be of interest to individuals who are thinking about investment portfolios and pension pots, but also businesses keen to see how investors are viewing their sectors, markets and customers.
Luke and Darren took us through how the markets looked pre-Covid, how they responded to the pandemic, and obviously most importantly what we might expect going forwards. They took a look at the sectors that are seeing the quickest bounce-back, discuss which countries are likely to be the most attractive for investors, and where the long term financial gains are expected to be. They also touched on that imminent event, shrouded in mist recently but no less significant – Brexit! What is the expected effect on the markets, and who are likely to be the winners and the losers?
Yes.
An employer which is aware that a worker or agency worker is or ought to be self-isolating, should not knowingly allow that worker or agency worker to leave the place that they are self-isolating in (“the designated place”). To do so without reasonable excuse would amount to an offence which could result in the employer being issued with a fixed penalty notice.
The value of the fixed penalty varies depending on if it is the first or subsequent fixed penalty notice to be issued:
| First fixed penalty notice | £1,000 |
| Second fixed penalty notice | £2,000 |
| Third fixed penalty notice | £4,000 |
| Fourth, and any subsequent fixed penalty notice | £10,000 |
Those who are eligible will be contacted directly by HMRC based on tax returns they have received. If you are eligible you will be asked to fill out an online application. HMRC will pay applicants directly.
All employers in the UK are eligible to participate in the scheme. The purpose of the scheme is to allow employers to claim back employment costs if they have furloughed employees arising from the coronavirus crisis. Importantly this means the scheme is not limited to cases where the employee would otherwise have been made redundant.
Key points:
- Between 1 November 2020 – 30 June 2021, the government will reimburse employers for 80% of wage costs, up to a cap of £2,500 per month, with employers expected to contribute 10% of that 80% in July 2021 and 20% of that 80% in August and September 2021. Employers will still need to pay employer NICs and employer pension contributions (these cannot be claimed for).
- The scheme now also allows employees to return to work part time being on furlough for the remainder. See flexible furlough above for more information.
- The employer can agree to pay the employee more than it will be reimbursed but it cannot reclaim the additional amount or any other costs associated with the additional amount.
- The workers covered by the scheme are those who have been “furloughed” which is a leave of absence.
- Workers must be told about and agree to this change of status (see below).
- Employers have to continue to pay the furloughed workers and the Government will reimburse the employer.
- HMRC is administering the scheme and it has been extended until the end of September 2021
- Those who left employment and are re-employed and subsequently furloughed by agreement are eligible (please see the FAQ regarding redundancy and furlough above).
- Payments may be withheld if claims are based on inaccurate or dishonest information, or are found to be fraudulent. HMRC has put in place an online hotline for employees and the general public to report suspected fraudulent claims.
- The Government has made alternative help available for employers to continue to pay employees while the scheme is set up.