Does an employee who is furloughed lose his/her benefits under an EMI share option?
One of the key legislative requirements of EMI is that the employee satisfies the working time requirement, which is that they work at least 25 hours per week in the company or, if less, 75% of the employee’s total working time. If the working time requirement ceases to be met, then there is a “disqualifying event”. That means that the tax benefits of EMI ceases. It may also mean that the option lapses, but that depends on the specific terms of the option.
An employee who has been furloughed is by definition no longer working 25 hours/week and therefore on the face of it, there is a disqualifying event. However, the Government has tabled an amendment to the Finance Bill currently going through Parliament providing in effect that time not worked because an employee has been furloughed counts as working time, both for determining whether the working time requirement is met initially and whether there is a disqualifying event. Provided this amendment is enacted, this should address the issue.
Related FAQs
The new rules for wearing face masks/face coverings in the workplace introduced on 23 September 2020 are as follows:
- Staff in retail, including shops, supermarkets and shopping centres, will now have to wear a face covering
- Staff in hospitality will now have to wear a face covering
- Guidance stating that face coverings and visors should be worn in close contact services, such as hairdressers and beauticians, will now become law
- Staff working on public transport and taxi drivers will continue to be advised to wear face coverings
You can take off your mask if:
- You who need to eat, drink, or take medication
- A police officer or other official asks you to
The government has also confirmed it will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser on 23 April – pledging a minimum of £20 million.
Head of Commercial, Colin Hewitt, speaks with the team at NewcastleGateshead Initiative about the complexities of event cancellations and the associated legal implications.
Click here to listen to the full podcast.
Put simply, if it is a requirement of a particular role that PPE is worn, then this should be provided to the employee. If an employer dismissed an employee for refusal to carry out their role due to lack of PPE then this is likely to be an automatically unfair health and safety dismissal.
Furthermore, anyone who is subject to a detriment as a result of raising a health and safety concern, e.g. someone in this situation who refuses to work due to lack of PPE and is sent home without pay, will also have a potentially valid claim in the Employment Tribunal for that detriment, even if they are not dismissed.
We have teamed up with Scaleup North East to help companies impacted by the coronavirus outbreak plan how to get back to business.
Our specialist lawyers will provide a free “diagnostic” call with eligible businesses across the NE, exploring challenges they are facing in the aftermath of the lockdown, and identify specific steps to survive, and then thrive, in these challenging times and beyond.
Through the collaboration with Scaleup North East, eligible North East-based SMEs are then able to apply for up to 40% funding towards up to £4,000 of legal advice.
These might include:
- Employment issues, such as dealing with a phased return to work
- Measures to support cash-flow, such as amendment to terms of trading and debt collection procedures
- Renegotiations and amendments to contracts, and other advice about contracts with suppliers and customers to deal with consequences of Covid-19
- Managing property costs – review of leases, advice on break clauses and formalisation of any revised arrangements recently put in place with landlords/tenants
- Health and safety implications of return to work and social distancing
Find out more on our website or contact partner Damien Charlton. If you are not eligible because of location but are interested in the free “diagnostic”, please contact us.