Coronavirus Job Retention Scheme updates welcome but gaps still need to be plugged, says Bectu
The government has updated the guidance on how the Coronavirus Job Retention Scheme can be used.
The changes include:
- clarification that people on fixed-term contracts can have their contracts extended
- confirmation that someone who left a company after the 28 February can be rehired and furloughed even if they left for non COVID-19 reasons
- confirmation that directors of PSCs can furlough themselves, although only for the salary element.
Head of Bectu Philippa Childs said in response:
“The most recent changes to the coronavirus Job Retention Scheme are a welcome step in the right direction.
“Many Bectu members will now be looking to their former employers to furlough them and Bectu is prepared to work with industry to advise on how best to navigate government guidance.
“However, there are gaps that still need to be plugged. PAYE freelancers who are in between contracts and stopped working before 28 February are still waiting for government guidance on how they can be furloughed.
“In our most recent survey 47% of people who took part said they were in this situation. These are people who are often entry or mid-level in their careers and are not high earners.
“There are also many people who are still not covered by the Self-employed Income Support Scheme and that means they are getting no financial support. These include those who operate as limited companies and pay the majority of their salary through dividends, the newly self-employed and people who earn above the £50,000 three year profit average.
“Bectu welcomes the government’s approach of clarifying and amending the existing schemes and will continue raising these issues to ensure that no-one is left behind during the pandemic.”