The New CJRS Treasury Direction

On 13 November, HM Treasury published its fourth Direction in relation to the furlough scheme. Treasury Directions form the legal framework for the scheme.

The new Direction:

  • formally extends the CJRS from 1 November 2020 until 31 March 2021;
  • sets out the detail of how the CJRS will operate between 1 November 2020 and 31 January 2021 (a further Direction covering February and March 2021 to be published in due course); and
  • withdraws the Coronavirus Job Retention Bonus.

The rules cover a wide range of issues including: eligibility; furlough agreements; claim periods; reference salaries; calculating usual hours of work; permitted activities during furlough; business succession (including TUPE); PAYE scheme reorganisations; and time limits for making claims.

Some key points are as follows:

  • Claims may not be made for any day that an employee is serving notice between 1 December 2020 and 31 January 2021. The Direction does not distinguish between notice of dismissal and notice of resignation.
  • It is now a condition of making a claim that the employer accepts that HMRC will publish information about CJRS claims on-line. This includes the name of the employer and a “reasonable indication” of the amount claimed. An exception may be made for employers who can show that publication would expose their workforce to “serious risk of violence or intimidation”.
  • Furlough agreements must be in place before the start of the relevant claim period (but may be varied during the claim period).