Update: Coronavirus Job Retention Scheme eligibility date changed to 19 March 2020
In order for an employer to claim 80% of an employee’s wage costs up to £2,500 per month under the Coronavirus Job Retention Scheme the employee must have been placed on the PAYE payroll and notified to HMRC on an RTI submission on or before 19 March 2020. This is a change, announced by the Government today, from the previous eligibility date of 28 February 2020.
Further, employees who were on the PAYE payroll and notified to HMRC on a RTI submission on or before 29 February and were made redundant or stopped working for the employer prior to 19 March 2020 can be re-employed now and put on furlough leave in order to claim under the Scheme.
This change comes after criticism of the Job Retention Scheme’s failure to provide for workers who started a new job after 28 February. The new eligibility date is the day before the Chancellor, Rishi Sunak, announced the Job Retention Scheme and therefore still acts as protection against fraudulent claims.
If you or your business need assistance navigating employment issues during the Coronavirus crisis, please do not hesitate to contact a member of our Employment Team.