Can employers use the furlough scheme for self-isolating staff?
With news of increasing numbers of staff being contacted by NHS Test and Trace or being “pinged” by the NHS COVID-19 app, can employers use the Coronavirus Job Retention Scheme (CJRS) for staff who have to self-isolate?
It’s clear from HMRC’s CJRS guidance that if an employee becomes sick while furloughed, they can remain on furlough, and they don’t have to be moved on to SSP. However, the guidance is less clear on whether a self-isolating employee who would otherwise be working can be placed on furlough during their self-isolation period, instead of being paid SSP. The guidance states that the CJRS is “not intended for short-term absences from work due to sickness”. It then goes on to say that “short-term illness or self-isolation should not be a consideration when deciding if you should furlough an employee. If, however, employers want to furlough employees for business reasons and they are currently off sick, they are eligible to do so, as with other employees”.
The specific wording in the latest Treasury Direction, which is the legal document that implements the CJRS, arguably means that employers can legally use the CJRS for employees whose employment activities have been adversely affected by the coronavirus, including those who can’t work because they’re having to self-isolate at home as a measure to limit further virus transmission.
Related Topics
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?