IMDA celebrates inclusion of commission pay in Government Job Retention Scheme

Marco Green
April 8, 2020

To qualify for the scheme, employees can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts.

In addition, while staff subject to the shielding guidelines can be put on furlough, it is less certain whether employees who are unable to attend work for other reasons relating to the pandemic are eligible, where they cannot work from home.

"I'd additionally like to look former employers step up throughout this time of nationwide emergency and rehire former staff the usage of the furlough scheme, which has been specifically created to save lots of peoples earning throughout this era". But when will furlough be paid and do you have to repay it? They can not work while receiving the payments, but remain employed.

The National Franchised Dealers Association (NFDA), which had written to Kemi Badenoch MP, Exchequer Secretary to the Treasury, to seek clarification on the Coronavirus Job Retention Scheme, also celebrated the changes to the Government Job Retention Scheme this week.

Employees hired after February 28, 2020 can't be furloughed and claimed for with the scheme.

The JRS will see the Treasury pay 80% of employees' salaries up to a limit of £2,500 a month. Your employer could choose to fund the differences between this payment and your salary, but does not have to.

Under changes to the scheme announced on Saturday (April 4) vehicle retail businesses are among those who can include any regular payments they are obliged to pay their employees - including wages, past overtime, fees and compulsory commission payments - in the 80% of wages (up to a £2,500 monthly limit) they can reclaim from Government.

All employers must designate employees as furloughed employees and notify their employers of this change.

The Job Retention Scheme aimed at protecting jobs has been widely welcomed by companies, which have seen their incomes plummet because of the shutdown and which need help to stay in business and keep staff on.

"Following our lobbying efforts, it is extremely positive that the Government has released further details about its Job Retention Scheme", said Sue Robinson, director of the NFDA. However, the online claiming service still isn't available yet.

The government's Business Support website reads: "We expect the first grants to be paid within weeks, and we're aiming to get it done before the end of April".

"If your business needs short term cash flow support, you may be eligible for a Coronavirus Business Interruption Loan".

Furlough payments will be made shortly after the online portal opens and claims have been submitted. This means you can backdate your furlough leave and get paid for working from March 1 if that's when you were furloughed.

Furlough pay given by the Government is a grant meaning that it does not need to be repaid.

Following estimates from a leading employers' organisation that at least a third of workers in the private sector were likely to be furloughed, the Resolution Foundation said it had upped its estimate of the bill the chancellor, Rishi Sunak, would face.

The guidance says that this includes "providing services or generating revenue". How to access the Coronavirus Job Retention SchemeWhen will furlough pay be made?

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER