Criterion of employee furloughed eligibility

Mikexx

A new employee started in late February. I can provide evidence that the employee was placed on company van insurance on the 6th March, plus obviously a signed contract.

I formally wrote to the employee soon after that ehy were being furloughed and sent them home.

Because I didn't have their pay details at the end of February I said I would add the extra week into the March 2020 payrun.

The criteria is plain. It says that they had to be on the RTI payroll on or before the 19th March.

Does this mean they are not eligible? And obviously won't now be paid for being laid off?

Any suggestions how I should broach this to the employee?

Jeremy535897

The date the contract of employment was signed, and the van insurance, are not relevant.
When you wrote to the employee to furlough them, you will have got their agreement and this would all have been in writing. I assume you also reduced their pay, in writing and agreed by the employee, to bring it in line with the amount you hoped to recover from the CJRS?
Presumably you did not complete a FPS for the employee until you paid them at the end of March?
Unless you specifically wrote into the variation of their contract that they would have to refund you if you did not get the CJRS grant, you still have to pay the employee what you have agreed to pay them while they are furloughed. If you want to stop this liability accruing in the future, you will have to cancel their furlough and make them redundant, or they agree to go on unpaid leave..

Mikexx

I better get writing another letter. The mention of a grant was in the original letter so had better have a look at the precise wording. I'm sure this will make their day too.

Jeremy535897

It is most unfortunate that the original guidance said that an employee had to be "on the payroll" at 28 February 2020. A lot of people, including employment lawyers, assumed that meant "employed". I always believed it would be determined by RTI submissions, because they generate evidence in HMRC's hands. So the revised guidance has not changed your situation, because your employee was not "on the payroll" at 28 February 2020 under the original guidance either. As a result, you seem to be in the situation where you have said you will pay furlough, but won't be able to claim it back from HMRC, but what you have to pay your employee will depend upon the terms of the furlough you agreed, and what you do now for the future.

EssJayD

I feel your pain OP.  We had advice that said it meant "employed" and I needed to stop being so suspicious that there would be red-tape down the line <hollow laugh>

You'll be in good company.  I suspect HR people up and down the country are collectively sighing......if you listen carefully.....you might hear some wails of despair on the wind.  That might be me.