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Many of you will be aware that over the weekend and today there have been three significant pieces of news on the furlough scheme:
- On Friday it was confirmed that the furlough scheme will remain open until the end of June (extended from the previous date of the end of May).
- HMRC have updated their guidance to confirm that annual leave can be taken during a period of furlough. We at MILS have been advising this was likely over the last few weeks. The confirmation will be welcome news to many employers - in particular that a period of annual leave does not break the 3 week furlough period thereby rendering an application to HMRC invalid.
HMRC also confirmed that the pay rate should be 100% rather than 80%, the employer having to top up the rest of the pay, however there is also a line that says the HMRC will keep ‘the policy on holiday pay during furlough under review’ (whatever that means)!
- The Coronavirus Job Retention Scheme portal allowing employers to make applications to the Government is now open. Given the amount of applications, it remains to be seen whether or not (as HMRC claim) the online system has been adequately stress tested for the volume it will face...
Kind regards,
MILS Legal Ltd.
T/A Motor Industry Legal Services
27b The Mansions
252 Old Brompton Road
London SW5 9HW
Tel: 020 7244 6790
Fax: 020 7244 6791
Email: legaldept@mils.co.uk
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