Share this content
2

CJRS - Impact of sabbatical/unpaid leave

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

Didn't find your answer?

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?

 

Replies (2)

Please login or register to join the discussion.

avatar
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.

Thanks (1)
avatar
By paulwakefield1
28th Apr 2020 12:11

Thank you. A sensible approach.

Thanks (0)
Share this content

Related posts