Yesterday the government cleared up some of the grey areas of the furlough scheme plan.
For those of you who have decided to, or are wanting to, take a second job the news is good.
According to the new guidelines as long as your contract with the employer who will be paying your furlough allows it, or you can get written consent from your employer, you can be furloughed and find alternative employment whilst receiving furlough pay.
You still cannot work for your current employer and claim furlough.
To Claim Furlough
Also, confirmation on what we all knew. Your employer will need to gain your consent to change the terms of your employment to put you on furlough. This consent needs to be obtained in writing and a copy kept for 5 years. Current discrimination laws will apply when the employer is deciding which employees to furlough.
What Is Included When Working Out Furlough Payments?
Finally, clarification on commission payments in the 80% payment for those furloughed. This is now the line on what is covered.
Your employer will be able to claim back 80% of your salary up to a maximum of £2500 along with Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions. As before this is all providing you were on payroll on or before 28th February 2020.
Your salary includes any regular payments you have including past overtime and compulsory commission but does not include discretionary bonuses or non-monetary benefits.
The salary as counted as either your fixed salary as of February 28th or, if you receive variable pay the higher of:
- Average months earnings from the 2019/2020 tax year
- The same monthly earnings from the previous year
Less than 12 months working for an employer means an average from the time you have worked there.
You will need to still pay Income Tax and Employee National Insurance, as well as pension contributions and student loan repayments.
At last this should bring an end to the endless second job questions. If your employer allows it, you can do it. Simple.
The plan is still to get the application system up and running by the end of April.