For any employers not following the correct process when it comes to the Job Retention Scheme, (or those exploiting it) the Government have announced measures that will now hold UK businesses accountable.
A law to deal with employers who exploit the Job Retention Scheme. This law will be introduced next month. But is exploitation of the scheme really happening?
Yes. And here is how we know it is...
Yes. And here is how we know it is...
1) There are some reports that some employers are claiming for wages under the scheme but still insisting employees do work for them.
A reminder: employees cannot do work while on furlough, including the ‘down time’ of part-time working arrangements during flexible furlough.
A reminder: employees cannot do work while on furlough, including the ‘down time’ of part-time working arrangements during flexible furlough.
2) Other employers have furloughed their staff without telling them, with employees only finding out when they receive 80% pay.
We know this because there has been almost 2000 calls to the furlough fraud hotline alleging misuse of the system.
We know this because there has been almost 2000 calls to the furlough fraud hotline alleging misuse of the system.
So how will the new law work?
Well, we know it is expected to give employers a 30 day grace period. During this time employers can “confess” to HMRC of mistakes they have made.
We also know genuine mistakes will be treated much more leniently than deliberate exploitation.
Well, we know it is expected to give employers a 30 day grace period. During this time employers can “confess” to HMRC of mistakes they have made.
We also know genuine mistakes will be treated much more leniently than deliberate exploitation.