14 April 2020

This update includes the latest government information about the job retention scheme and furloughing staff. It covers:

  • When will the scheme open for applications?
  • When will the first payments be made?
  • How long after applying will payments be made?
  • Will the system have enough capacity to deal with all the applications?
  • What about my weekly paid staff?
  • How far in advance can I claim my employees’ wages?
  • I have an employee who started work after 19 March 2020, can I claim for them?
  • How will HMRC monitor the scheme?
  • Can employees take annual leave during furlough?
  • What about maternity leave, adoption leave, paternity leave or shared parental leave?

You can also read our regularly updated job retention scheme FAQs. 

When will the scheme open for applications? 

It is currently expected that employers will be able to apply online from 20 April 2020. Remember: don’t be caught out by scammers and fraudsters – use only the government’s official online system to apply. 

When will the first payments be made? 

First payments are expected to be made by 30 April. (You may have heard that some payments have already been made – this would have been via the system during testing.) 

How long after applying will payments be made? 

Normally, payments will be made within four to six days of an application being made. 

Will the system have enough capacity to deal with all the applications? 

The system has been tested to ensure it can handle up to 450,000 applications an hour. 

What about my weekly paid staff? 

If you have weekly paid employees you can submit weekly applications as applications are made per pay period. However, your employee must be furloughed for a minimum of three weeks to be eligible for the scheme. 

How far in advance can I claim my employees’ wages? 

You can claim up to 14 days in advance of their normal pay date. 

I have an employee who started work after 19 March 2020, can I claim for them? 

Unfortunately, you cannot claim wages for anyone who started work after 19 March 2020. 

How will HMRC monitor the scheme? 

HMRC will have the right to investigate claims made under the scheme – including for a period of time after claims have been made and paid. For this reason, make sure you keep all your documentation and records relating to your employees’ furlough arrangements for at least five years. 

Can employees take annual leave during furlough? 

Our legal advice is that employers should agree with their employees (or give notice to them) that annual leave cannot be taken while they are furloughed. This is because it is not yet clear if taking annual leave would interrupt any period of furlough leave being claimed – which our legal advisers believe could lead to applications for financial support through the job retention scheme being rejected. There is no clear guidance from the government yet. 

What about maternity leave, adoption leave, paternity leave or shared parental leave? 

The normal rules for maternity and other forms of parental leave and pay apply. 

You can claim through the scheme for any amounts you normally pay in addition to the statutory pay for employees who qualify for:

  • maternity pay
  • adoption pay
  • paternity pay
  • shared parental pay

 If your employee is due to return from this type of leave you must explain that they cannot return to work on the date they were expecting to. You will need to explain the furlough leave arrangements to them. Their furlough will start on the day they were due back at work. 

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