'Our vision is to become your partner and understand your business, your finances, your business problems and your aspirations'.
logo
topphone

"As you will have seen already, as a firm we are ensuring we are providing daily updates to clients with regard to matters which may affect you and your business as a result of the COVID-19 (coronavirus) pandemic. Should key matters change or further clarification be provided by the Government on support measures for businesses and individuals during the day, we will send out an immediate update to you as well. Once again, as has been reiterated in all communications sent out, we are here to provide help and advice to you at this unprecedented time. All of our Partners and Managers are fully available via calling the office number, their mobile, via email, and also via video calls through Microsoft Teams, Skype, Facetime, etc.

As a result of the Prime Ministers announcement last night resulting in a level of a “lock down” across the country, the support measures announced last week by the Government will be coming even more into focus for many businesses.

One provision we are understandably receiving many queries on is in relation to the Job Retention Scheme and the possibility of obtaining repayment of 80% of furloughed staff wage costs. The details on this provision have unfortunately still not been issued, as we reported yesterday. However, we have produced the guidance attached to provide as much detail as possible on this at the moment. We will of course be in contact with you as soon as there is more information on the HMRC portal which is to be set up to deal with this, as well as when it becomes clear what information and evidence HMRC will be requiring. We also still await how they will administer this and deal with repayments of eligible amounts. Clients should review the guidance attached and speak to us to consider whether they feel they should be looking at issuing “furlough letters” to staff at this stage.

As a further reminder of the current support measures announced, attached is the information we have sent out previously. Again, we will provide updates as and when the Government provide further clarity and detail on these matters.

So far, there is also little detail on how the self employed are covered by any of the measures, and also whether anything will be implemented to support company owners and their income and drawings. As soon as we hear anything further on this, we will let you know.

Please be strong and look after yours and your family’s health. We are with you all the way and will continue to work extremely hard so that we can get through this together."

Andrew Baggott
Managing Partner

 

FURLOUGHED WORKER INFORMATION

PLEASE NOTE: THIS NEEDS CONFIRMING WITH LAWYERS AND / OR HR SPECIALISTS AND THE DRAFT LETTER TO EMPLOYEES IS AN EXAMPLE ONLY AND SHOULD NOT BE RELIED UPON IN PRACTICE.

2020 will obtain advice – this make take a few days. Be warned use at your peril until we are have taken such advice.    

FURLOUGH LETTERS

An employee furlough refers to a temporary leave or modification of normal working hours for a specific amount of time. It’s a leave of absence given to an employee with the promise that they will still have their job once the leave is over.

Employee furloughs are becoming common practice in both public and private-sector organisations. There are numerous reasons why employers implement a furlough employee policy, such as plant shutdowns, seasonal work, company reorganizations and reduced demand due to COVID-19.

Don’t rush into implementing an employee furlough policy without talking to your lawyer or HR specialist first.

If you decide that putting employees on furlough is the best option for you and your employees, then you need to prepare a notification letter. Your furlough notice letter should contain the following:

  • Address - This is a formal letter, a furlough notice should clearly state the date, employee’s name, and their address.
  • Purpose – State the purpose of the letter. Get straight to the point. Include the employee’s position, department, reason for the furlough, and information about any changes to employee benefits. It is advisable to tell the employee that this action does not reflect dissatisfaction in job performance.
  • Detail - Explain what a furlough is, determine the length of the furlough, and communicate employee benefits during this period to employees.
  • Future communication - Offer a way for the employee to keep in touch. End the letter on a positive note.

EXAMPLE TEXT [NOTE: RUN THIS PAST YOUR HR SPECIALIST]:

[Send to employee’s address]

Dear [Employee name],

NI NUMBER AND / OR PAYROLL NUMBER

The purpose of this letter is to formally notify you that your position as [INSERT] on the [XXX DEPARTMENT] is being closed temporarily due to the downturn in business as a result of the COVID-19 Pandemic.

Your last official day of work will be [INSERT DAY]. Your salary and benefits will continue at their current level during the Furlough period. Please understand this action in no way reflects dissatisfaction with your job performance.

The length of this furlough is [insert future date or unknown at this time].

We will provide regular information as the current Pandemic unfolds and if and when we return to normal working routines.

A Furlough is a short-term temporary leave of absence. The furlough period and provisions may be changed or terminated at the sole discretion of the Company, and does not create any employment contract, express or implied.

During the furlough period, your pension and other benefits will continue [IF APPLICABLE].

Thank you for your contributions to the business and if I can offer assistance in any way, please contact me.

Yours Sincerely,

[insert signature]

 

  • icaew firm logo black
  • foot logo2
  • AA10793 Stockport Business Awards Logo 2019 horizontal

 

 

 

 

 twitter      orange linkedin 256      Facebook

 

Save

Save

Save

Clarke Nicklin House, Brooks Drive, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3TD. Registered Number OC309225.
The firm is registered to carry on audit work in the UK & Ireland. Details about our audit registration can be viewed at www.auditregister.org.uk under reference number C001178544. The professional rules applicable are the Audit Regulations and Guidance which can be found at www.icaew.com/regulations, and the International Standards on Auditing (UK and Ireland) which can be found at www.frc.org.uk/apb/publications/isa.cfm.