The letter states that “employers should discuss with their employees and make changes to the appointment employment contract. To qualify for the subsidy, employers must certify in writing to their employee that they have been tried again. If this is done in a manner consistent with labour law, this consent applies to the EURS claim. Employers need to start planning what their employees will look like now, if furlough develops, writes Mark Kaye. It issued the clarification after there appeared to be a discrepancy between the information contained in a Ministry of Finance statement, published to HMRC, that workers should agree in writing to cease all work and in the HMRC manual for employers, which stipulated that written consent of the employee was not necessary; a written recording of a conversation that took place. Don`t panic. HMRC seems very happy to accept claims for 80% of the salary without the need to prove the employee`s written consent. It is unlikely to change its approach. Some employers have approached workers to ask them to sign other documents. This can lead to other problems. Sometimes the best thing is not to bite the bear. “To qualify for the grant, employers must certify in writing to their employee that they have been tried again.
If this is done in a manner consistent with labour law, this consent applies to the EURS claim. There must be a written record, but the employee does not have to give a written response. A record of this communication must be kept for five years. (Added highlight) Why do some say that the employee`s written agreement is necessary? It`s easy. There were now six iterations of HMRC Guidance, four of which preceded the Treasury Directorate. The first iteration simply required the employer to inform the worker in writing that he or she must stop working (but does not require the employee to accept anything, much less in writing). The second to the fifth iteration added a requirement that the employer keep a copy of this written communication for five years, but did not say anything about the written agreements. Could Hmrc renounce what he has said repeatedly and refuse to pay to employers who cannot provide a worker`s written agreement to hire any work for the employer? Otherwise, it would be extremely vulnerable to judicial review; see here. The re-release of the guide after the management`s publication, which is woefully contrary to management, would make HMRC`s position very difficult if it subsequently attempted to address employers based on its guidelines. “Simply put, employers and workers must reach an agreement and a verifiable written record of this agreement must be retained. The result is not necessarily that the worker confirmed in writing that such an agreement had been reached in all cases. Does an employer need a worker`s written consent not to do work under the employment contract before it can assert a valid right under the coronavirus retention regimen? Many employers were concerned that they would not be able to claim 80% of employees` wages under the system because they did not have a written agreement when employees stopped working.
However, in a letter circulated by employment lawyer Daniel Barnett of Outer Temple Chambers, HMRC stated that workers would not have to submit a written agreement until they could qualify for furlough under the Job Retention Scheme coronavirus.