We are aware that some schools are already using or are considering using the government Coronavirus Job Retention Scheme (CRJS) to furlough workers in particular staff in Breakfast & After School Club funded by parents.
The current advice from the LGA is that there remains a lack of clarity over the eligibility of employees with multiple contracts of employment with the same employer. We are awaiting formal confirmation on this issue.
Our previous Furlough factsheet strongly advised schools to discuss their eligibility for using this scheme by HRMC and Finance before making the decision to furlough staff. We reiterate this advice. The updated DfE published guidance (27th May 2020) related to Covid-19 and financial support for education is below:
The updated guidance makes reference to specific cost areas within a school that are financed by separate private income streams but before/after school clubs are not mentioned. In addition, following discussions with the HRMC today, it is unclear whether staff with multiple contracts (job roles) within the school can be furlough for one role and continue to work in another.
Our two main areas of concern are:
It is extremely difficult based on the DfE guidance and HRMC response to provide clear advice on whether roles within a school and financed by ‘private income streams’ will or will not be applicable for a CJRS claim.
It is even more unclear whether an employee with multiple roles can continue to work for the same school in a ‘public funded’ role whilst furloughed in a ‘private funded’ role.
As you know, it was not envisaged that schools would need to furlough their staff in relation to Covid-19 as most staff are covered by public funds (DSG). However, some staff within schools are funded by external private income (e.g. parental fees).
The HRMC guidelines are:
That to qualify for the Coronavirus Job Retention Scheme, furloughed workers can’t undertake any work for their employer, or for any organisation linked or associated with the organisation. Furloughed employees can take part in volunteer work or training, as long as they do not provide services to, or generate revenue for, their employer or for any organisation linked or associated with their organisation. If an employee has more than one job, they can still work for their other employer – each job is separate.
To be eligible for the grant, an employee cannot undertake work for, or on behalf of, the organisation or any linked or associated organisation when on furlough.
We will continue to explore this issue but in the meantime please contact your Payroll provider to request further clarity on their interpretation of CJRS and how this applies to your schools specific requirements.
