What Elements of Remuneration Can Be Claimed Through The Job Retention Scheme (“JRS”)?

Posted in : First Tuesday Q&A NI on 7 April 2020
Johanna Cunningham
Arthur Cox
Issues covered:

On 4 April 2020, the government provided more information on the specific elements of remuneration that can be claimed when calculating the wages of those who are being furloughed.

The guidance confirms that employers can claim for any regular payments that they are obliged to pay their employees, this includes:

  • wages;
  • past overtime;
  • fees; and
  • compulsory commission payments.

The following elements of remuneration cannot be included:

  • discretionary bonus (including tips);
  • commission payments;
  • non-cash payments (including taxable benefits in kind and salary sacrifice arrangements); and
  • any additional National Insurance or pension contributions.

There is still some ambiguity around what actually constitutes “past overtime” and it is hoped that the government will provide further clarity on this.

  

Back to Q&A's This article is correct at 07/04/2020
Disclaimer:

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Johanna Cunningham
Arthur Cox

The main content of this article was provided by Johanna Cunningham. Contact telephone number is Johanna Cunningham or email belfast@arthurcox.com

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