Q&As

If an employee director is placed on furlough under the coronavirus (COVID-19) job retention scheme, what is the effect on their duties as a director?

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Published on LexisPSL on 06/04/2020

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

  • If an employee director is placed on furlough under the coronavirus (COVID-19) job retention scheme, what is the effect on their duties as a director?
  • Update (15 April 2020)

UPDATE: Since this Q&A was first published on 6 April, the HMRC guidance for employers: Claim for your employees’ wages through the coronavirus job retention scheme and guidance for employees: Check if your employer can use the coronavirus job retention scheme (first published on 26 March, and revised on 4 April) have been further revised on 9 April and 15 April 2020. The government also published a Treasury Direction on 15 April.

For information on the revisions 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. 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 on the position as at 15 April 2020, see: below.

An employee director’s status as an employee is separate from the office they hold as a director of the company.

A director owes a number of duties to the company. Many of those duties have been developed by the courts over hundreds of years from more general common l

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