Can NHS or local authority workers be furloughed?
It is envisaged that employees of organisations falling into the first two categories set out above and won’t be eligible for the job retention scheme in relation to the majority of their employees. It is envisaged that NHS Trusts for example are going to require their staff to be working at full capacity where possible. However, the guidance doesn’t definitely exclude public sector organisations from furloughing employees and notably the government expects such organisations to use public money to continue to pay staff and not furlough them, rather than say requires. In reality, it is difficult to see how such an organisation will be able to rely on the scheme, but the guidance doesn’t completely rule it out.
Related FAQs
The Government published guidelines on 23 March 2020 concerning house sales.
Estate Agents have been required to close their offices and although staff are allowed to work from home they must not attend properties for any reason.
Therefore, if the property has not yet been put onto the market you will be unable to obtain a proper valuation at present. Also, restrictions on movement means that people must not view properties in person. Therefore you ought to delay marketing.
If you have found a buyer and the property is empty then the transaction can go ahead but you may experience delays in the transaction. For example, if your buyer needs a mortgage there will be a delay in getting a mortgage offer and even if it’s a cash purchase there are likely to be delays with Local Authority Searches.
You should discuss with your conveyancer whether to include special contract conditions. These could take into account what happens if the buyer or someone in the chain falls ill between exchange and completion and cannot move on the anticipated completion date.
If you have exchanged contracts the Government guidelines indicate that the sale of an empty property can go ahead to completion. However, if the contents of the property have not been removed you may have difficulty getting it cleared. Similarly, your buyer or someone else in the conveyancing chain may find that their removers are unable to move them. If this happens, you ought to discuss this with your conveyancer and your buyer as soon as possible to see if completion can be delayed to a later date.
On 30th April 2020, the CMA issued a guidance note setting out its views about how the law operates in relation to refunds.
Where a contract is not performed as agreed, the CMA considers that in most cases, consumer protection law will generally allow consumers to obtain a refund.
This includes the following situations:
- Where a business has cancelled a contract without providing any of the promised goods or services
- Where no service is provided by a business, for example because this is prevented by Government public health measures
- A consumer cancels, or is prevented from receiving any services, because Government public health measures mean they are not allowed to use the services.
In the CMA’s view, this will usually apply even where the consumer has paid what the business says is a non-refundable deposit or advance payment.
This positon reflects the CMA’s previous guidance which they had issued in relation to the requirement of fairness in consumer contracts under the Consumer Rights Act 2015, which was that a clause in a contract that gives a blanket entitlement to a trader to cancel a contract and retain deposits paid is likely to be unfair, and therefore unenforceable – it would be unfair to a consumer to lose their deposit if the contract is terminated without any fault on their part, and if they had received no benefit for the payments made.
The CMA’s latest guidance therefore confirms their view that the Covid-19 outbreak does not change the basic rights of the consumer, and that they should not have to pay for goods or services that they do not receive.
- The Pensions Regulator has published regularly-updated guidance for employers.
- It will take “a proportionate and risk-based approach towards enforcement decisions … with the aim of supporting both employers and savers”. In other words, the law remains the same, but the Regulator will show restraint in enforcement against breaches.
On 2 April 2020, the Government issued guidance relating to Private Finance Initiatives and PF2 Projects. The guidance, which is to be enforced with immediate effect (currently due to stay in place until 30 June 2020), is one of several guidance notes issued to date.
A link to the guidance is set out below:
Key messages to contracting authorities
- PFI contractors should very much consider themselves as being part of the public sector response to the current pandemic
- Covid-19 is not regarded as, and is not to be classified as a force majeure event
- PFI contractors must ensure that contingency plans are up to date and have been reviewed and discussed with contracting authorities to enable the continuity of full services to respond to the pandemic and maintain vital public services
- Contracting authorities should work closely with PFI contractors to use all available options to maintain public services during the emergency period
- Local arrangements should be made where PFI contractors can’t deliver the agreed requirements and performance standards
- “Best efforts” should be made by all parties for the continuation of service provision
All employers in the UK are eligible to participate in the scheme. The purpose of the scheme is to allow employers to claim back employment costs if they have furloughed employees arising from the coronavirus crisis. Importantly this means the scheme is not limited to cases where the employee would otherwise have been made redundant.
Key points:
- Between 1 November 2020 – 30 June 2021, the government will reimburse employers for 80% of wage costs, up to a cap of £2,500 per month, with employers expected to contribute 10% of that 80% in July 2021 and 20% of that 80% in August and September 2021. Employers will still need to pay employer NICs and employer pension contributions (these cannot be claimed for).
- The scheme now also allows employees to return to work part time being on furlough for the remainder. See flexible furlough above for more information.
- The employer can agree to pay the employee more than it will be reimbursed but it cannot reclaim the additional amount or any other costs associated with the additional amount.
- The workers covered by the scheme are those who have been “furloughed” which is a leave of absence.
- Workers must be told about and agree to this change of status (see below).
- Employers have to continue to pay the furloughed workers and the Government will reimburse the employer.
- HMRC is administering the scheme and it has been extended until the end of September 2021
- Those who left employment and are re-employed and subsequently furloughed by agreement are eligible (please see the FAQ regarding redundancy and furlough above).
- Payments may be withheld if claims are based on inaccurate or dishonest information, or are found to be fraudulent. HMRC has put in place an online hotline for employees and the general public to report suspected fraudulent claims.
- The Government has made alternative help available for employers to continue to pay employees while the scheme is set up.