What are the limitations of furloughing staff for publicly funded organisations?
The guidance from the Government concerning private sector organisations is very different from the guidance for public sector and organisations that receive public funding. The guidance states:
“The government expects that the scheme will not be used by many public sector organisations, as the majority of public sector employees are continuing to provide essential public services or contribute to the response to the coronavirus outbreak.
Where employers receive public funding for staff costs, and that funding is continuing, we expect employers to use that money to continue to pay staff in the usual fashion – and correspondingly not furlough them. This also applies to non-public sector employers who receive public funding for staff costs. Organisations who are receiving public funding specifically to provide services necessary to respond to Covid-19 are not expected to furlough staff.”
This guidance isn’t particularly clear but it appears that there is a recognition that there are different types of organisations which could be caught by this:
- Organisations who will be required to provide frontline services during the Covid-19 response. It is interpreted that NHS organisations such as NHS Trusts will fall firmly into this category. Employees of such organisations are expected not to be furloughed and to continue to work and be paid their normal salary in the usual way.
- Organisations who receive public funding to provide services to respond to the Covid-19 crisis. These organisations are not expected to furlough their staff. The type of organisation that would fit into this category are those that have been commissioned to developing breathing apparatus or testing kits to meet the needs of the healthcare sector during the peak of the pandemic.
- Organisations who receive public funds for staff costs to operate services. Employers are expected to continue to pay staff if the money to pay them is publicly funded. It is strongly inferred that this is irrespective of whether such staff have any work to perform. The type of organisation that is likely to fall into this category are GP practices, charities and private sector companies that have won contracts with the public sector.
Related FAQs
Where a development is considered to be “EIA development” (being development where an Environmental Impact Assessment or Environmental Statement is required to be submitted) there are additional statutory publicity and notice requirements over and above the requirements for a standard planning application. Regulations usually require that the environmental statement is to be made available for inspection by the public at all reasonable hours at an address in the locality for a period of at least 30 days. Copies of the environmental statement are also to be made available for people to take away from that address. This clearly requires physical copies to be available at a specified location for a prolonged period of time, which may prove problematic during the current health crisis.
New regulations came into effect on 14 May 2020 which will temporarily suspend the above requirements and will instead require the Environmental Statement to be available for inspection online. The applicant must however provide a certificate to the Local Planning Authority stating what steps have been undertaken to bring the application (and the Environmental Statement) to the attention of people who are likely to have an interest and why it considers that such steps were reasonable.
The Government guidance does not require any business to close except some non-essential shops and public venues, so in theory, all businesses can continue to occupy and operate from their existing premises. However, government guidance strongly encourages businesses to arrange for everybody able to work from home to do so. The majority of office sector business will fall into this category.
In the industrial sector, the majority of businesses will not be able to operate via home working and will, therefore, need to retain employees on site though in some cases this may be able to be scaled back.
Any tenants continuing to operate from their premises should consider whether or not they need to make any alterations to the premises to facilitate social distancing of employees and whether or not such works would require a consent from the Landlord under the terms of the lease.
No. The greater the gap between the completion of a Prenuptial Agreement and the Wedding the more likely it will be upheld by the Court. If such an Agreement is made shortly before the wedding takes place one of the parties to it could claim that they felt under pressure to sign and the Court may decline to follow it.
Initially, the relaxation applied to supermarkets and food suppliers. This was subsequently widened to apply to other businesses, permitting them to collaborate where necessary to respond to the crisis in the interests of consumers.
The scheme is being administered by HMRC under a new online portal that has been set up. It applies to businesses, charities, recruitment agencies, individuals who employ a nanny, administrators (where there is a reasonable likelihood of re-hiring the workers) and public authorities.
All employers with a UK payroll can apply as long as you have:
- Created and started a PAYE payroll scheme on or before 28 February 2020
- Enrolled for PAYE online (which can take up to 10 days)
- A UK bank account.
To make a claim you will need:
- The number of employees being furloughed
- The start and end date of the claim
- The name and National Insurance Numbers for each furloughed employee
- Your employer PAYE reference number
- To be registered for PAYE online
- The Self-Assessment Unique Taxpayer Reference, Corporation Tax Unique Taxpayer Reference or Company Registration Number as appropriate for your entity
- Your UK bank account details and sort code
- Your name and contact number
- Your organisation’s registered name
- Your organisation’s billing address
- The full amounts you are claiming for including:
- Employee wages
- Employer national insurance contributions
- Employer minimum pension contributions
For claims for those who are flexibly furloughed you will also need:
- the number of usual hours the employee would work during the claim period
- the hours the employee has worked or will work during this period
- you will also need to keep a record of the number of furloughed hours that the employee has or will be furloughed for.
You will need the above information ready before you access the system to make a claim. You will also need to have calculated the amounts claimed in advance as the application needs to be completed in one session. You can currently save one draft of the application and it must be completed within 7 days of starting it.
The Government has issued a step-by-step guide for employers who wish to make a claim under the scheme which can be found using the link below. It contains useful information about calculating the payments claimed. You will need to register for a Government Gateway ID and password if you do not yet have one in order to access the portal.
If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf. If you use a file only agent (who files your RTI return but doesn’t act for you on any other matters) they won’t be authorised to make a claim for you and you will need to make the claim yourself. A file only agent can assist you in obtaining the information required to make a claim (listed above). If an agent makes a claim on your behalf you will need to tell them which bank account you would like the grant to be paid into.
For claims for fewer than 100 employees you will need to input the details separately for each employee. If claiming for more than 100 employees you can upload a file with the information instead. The file should include the following information for each furloughed employee: name, National Insurance number, claim period and claim amount, payroll/employee number (optional). You will also need to include details of hours normally worked, actual hours worked and hours furloughed for those who are flexibly furloughed.
The need to demonstrate the impact of coronavirus on your business is not one of the criteria listed above about who can make a claim, so the government does not appear to intend to set a specific test to determine if a business is “severely impacted by coronavirus”. You are not required to explain the impact of Coronavirus on your business when submitting your claim.
HMRC will retain the right to audit any claim retrospectively. You must keep records for 6 years including:
- the amount claimed and claim period for each employee
- the claim reference number
- you calculations for each claim
- details of hours usually worked and hours actually worked for flexibly furloughed employees.
You must tell your employees that you have made a claim under the scheme, and you must continue to pay their wages during this time.