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CJRS - Impact of sabbatical/unpaid leave

Can the number of days unpaid leave be excluded from the averaging calculations?

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Firstly apologies if this has already been addressed in the myriad CJRS questions but multiple searches have failed to turn anything up.

If a variable pay employee had a sabbatical/period of unpaid leave in the 2019/20 tax year, are the days in that period still counted in the averaging? The HMRC Guidance effectively says that they are.

The legislation actually states: "the average monthly (or daily or other appropriate pro-rata) amount paid to the employee for the period comprising the tax year 2019-20 (or, if less, the period of employment) before the period of furlough began".

Do you think the bold bit gives some wriggle room? Has anybody else had to address this issue?


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By paul.benny
28th Apr 2020 11:41

This is very similar to the situation of workers on zero hours contracts. The calculation guidance is silent on that.

In your case, I would exclude the period of unpaid leave from your calculation. As with any such decision that might be challenged later, I would document your rationale for your decision.

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By paulwakefield1
28th Apr 2020 12:11

Thank you. A sensible approach.

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