Businesses given furlough scheme update

Employment law experts at Lanyon Bowdler Solicitors have been keeping businesses up to speed with the changing legislation ever since the scheme was launched in March.

The latest update was issued by the Government on June 12, and John Merry, head of employment law at Lanyon Bowdler, has been quick to respond with fresh advice for businesses.

He said: “The Government updated its guidance on its ‘furlough scheme’, the Coronavirus Job Retention Scheme, on June 12 to reflect changes announced by the Chancellor in recent weeks.

“As always, the devil is in the detail and, as has been a feature of the scheme since the outset, some aspects have not been explained as clearly as they might have been or otherwise leave some room for doubt.

“Further, an important change to the Treasury Direction, which sets out the formal rules which govern how HMRC is to operate the scheme, relating to employees with variable pay who have been on statutory parental leave or sick leave, has not been reflected in the updated guidance.

“The scheme has undoubtedly been a vital source of financial support for many businesses, but it has some complexities.

“The Government has had to develop the scheme from scratch and in a hurry, so it is understandable that there will be some gaps and inconsistencies, but most of these could and should have been avoided with a bit more thought.

“They have given rise to a greater need for employers and employees alike to obtain legal advice than would otherwise have been the case.”

John and his team have been keeping Lanyon Bowdler’s website updated on a regular basis as the Government’s guidance and the formal rules of the scheme have changed. Read his latest blog at www.lblaw.co.uk