Motor Industry Legal Services

legaldept@mils.co.uk | www.mils.co.uk | 020 7244 6790

Dear member,

Following the announcement that car showrooms should shortly re-open from 1st June (and whilst we all still await for more detailed guidance on the forthcoming changes to the CJRS scheme) late on Friday afternoon the Government has also issued a new Treasury Direction on the existing CJRS. This new Direction slightly modifies and further clarifies some of the matters established by the earlier Treasury Direction.

Main points are as follows:

  1. The form of furlough agreement needed has been updated and the original requirement that a furlough agreement must be in writing has now changed and says simply that the agreement between the employer and employee must:
    • specify the main terms and conditions upon which the employee will cease all work in relation to their employment;
    • be incorporated (expressly or impliedly) into the employee's contract; and
    • be made in writing or confirmed in writing by the employer.

    Furthermore, employers need to keep that record until June 2025.

  2. The new Direction sets out more detailed guidance on the kind of study and training that an employee can do whilst on furlough.

  3. An amendment now provides that where SSP is in payment or due to be paid, furlough cannot begin until immediately after the end of the period of incapacity, but also states that the timing of the end of that period can be determined by the employer and employee.

  4. There is more explicit guidance on how the scheme applies to employees on unpaid leave.

  5. Finally, there is further attempted clarification on what amounts to 'pay' at paragraph 7, albeit whether or not the new guidance clarifies or further obfuscates is a matter of debate.

See the full Treasury Direction here


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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