Q&As

Can an employee who does not have a UK contract of employment be placed on furlough under the coronavirus (COVID-19) job retention scheme?

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Published on LexisPSL on 07/04/2020

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

  • Can an employee who does not have a UK contract of employment be placed on furlough under the coronavirus (COVID-19) job retention scheme?

Can an employee who does not have a UK contract of employment be placed on furlough under the coronavirus (COVID-19) job retention scheme?

This Q&A takes account of the HMRC guidance for employers: Claim for your employees' wages through the Coronavirus Job Retention Scheme as at 15 April 2020.

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

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

  2. HMRC publishes second update to employer and employee guidance on Coronavirus (COVID-19) Job Retention Scheme, and

  3. Treasury gives legal effect to Coronavirus Job Retention Scheme and updates guidance a third time

For information:

  1. on how to determine which system of law is applicable to a contract of employment or employment relationship, see Practice Note: Applicable law—which system of law applies to the contract or employment relationship

  2. on the coronavirus (COVID-19) job retention scheme (CJRS), see Practice Notes: Coronavirus Job Retention Scheme (original version to 30 June 2020) and Coronavirus Job Retention Scheme (original version to 30 June 2020)—FAQs

The updated employer guidance makes it clear that any entity with a UK payroll can apply for a grant under the CJRS, provided it has:

  1. created and started a pay as you earn (PAYE) payroll scheme on or before 19 March 2020 (previously 28

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