Q&As

Are there any particular considerations an employer needs to take into account in deciding whether to designate a director as a ‘furloughed worker’ under the coronavirus job retention scheme?

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Published on LexisPSL on 01/04/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Are there any particular considerations an employer needs to take into account in deciding whether to designate a director as a ‘furloughed worker’ under the coronavirus job retention scheme?

A person appointed as a director of a company is an office-holder and is not, by virtue of that appointment alone, also an employee of the company.

For employment law purposes, it will be a question of fact whether or not a director is an employee (or indeed a worker).

See Practice Notes:

  1. Office-holders—Directors

  2. Employee status

  3. Worker status

Payments to directors are subject to PAYE deductions (see Practice Note: Scope of the PAYE system).

The HMRC guidance for employers: Claim for your employees’ wages through the coronavirus job retention scheme was first published on 26 March 2020, and has since been updated on 4 April, 9 April and 15 April 2020. The government also published a Treasury Direction on 15 April.

For information on the CJRS generally, see Practice Note: Coronavirus Job Retention Scheme (original version to 30 June 2020)e.

For information on the updates to the HMRC guidance made on 4 April, 9 April and 15 April 2020, and the Treasury Direction, see the following News analyses:

  1. HMRC publishes updated employer and employee guidance on Coronavirus (COVID-19) job retention scheme

  2. <•
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