CJRS: record of employee communication

Are you checking these records?

Didn't find your answer?

Just a thought - with it often falling to accountants to make the CJRS claim, what checks are you doing on the requirement to communicate with employees?

I've simple advised that a written record of the communication needs to be maintained for 5 years. 

I wonder though, should I be checking all such correspondence is in order before submitting a claim?

Replies (9)

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By Wanderer
21st May 2020 06:11

What requirement would that be then?

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By the_drookit_dug
21st May 2020 08:47

The HMRC guidance states:

"Agreeing to furlough employees

Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.

To be eligible for the grant employers must confirm in writing to their employee confirming that they have been furloughed. If this is done in a way that is consistent with employment law, that consent is valid for the purposes of claiming through the scheme. Collective agreement reached between an employer and a trade union is also acceptable for the purpose of such a claim. There needs to be a written record, but the employee does not have to provide a written response. A record of this communication must be kept for five years."

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Replying to the_drookit_dug:
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By Wanderer
21st May 2020 09:11

the_drookit_dug wrote:

The HMRC guidance states:

"Agreeing to furlough employees

Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.

To be eligible for the grant employers must confirm in writing to their employee confirming that they have been furloughed. If this is done in a way that is consistent with employment law, that consent is valid for the purposes of claiming through the scheme. Collective agreement reached between an employer and a trade union is also acceptable for the purpose of such a claim. There needs to be a written record, but the employee does not have to provide a written response. A record of this communication must be kept for five years."

Okay, this seems to be (loosely) based on regulation 6.7
Rishi wrote:

6.7 An employee has been instructed by the employer to cease all work in relation to their employment only if the employer and employee have agreed in writing (which may be in an electronic form such as an email) that the employee will cease all work in relation to their employment.
My thoughts are, as below don't get involved, too many pitfalls are going to come up over the next few years, fed by ambulance chasing lawyers.
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boxfile
By spilly
21st May 2020 06:47

I think the clients need to take on the responsibility for this. We have provided them with a template letter to issue to employees they are furloughing, but that’s as far as we go.

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By Luke
21st May 2020 13:39

spilly wrote:

I think the clients need to take on the responsibility for this. We have provided them with a template letter to issue to employees they are furloughing, but that’s as far as we go.

Agree. I sent them a guide of what they needed to do and sent them ACAS templates with links.

I am not checking any of this has actually been done.

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By Wanderer
21st May 2020 07:01

Ah, thanks spilly. OP if that's the case DO NOT GET INVOLVED!

There are separate aspects of this:-

1. The contract between the employee and employer including the variation of the employment contract to agree furloughing.
2. The calculations of the amounts and claim under the CJRS.

If you are advising on 1. then unless you are a lawyer or other professional specialising in employment law and variation you are going down a very dodgy road.

As far as I've read (prepared to be corrected) there is NO communication requirement under the CJRS regulations. As an accountant I'm happy to advise on 2 but 1 I wouldn't touch with a barge pole.

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By NYB
21st May 2020 11:17

My job is to process the CJRS after having informed clients of their responsibility. I'm not experienced in any form of employment legislation. they can deal with that as theirr part of ship.

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By the_drookit_dug
21st May 2020 12:20

That's what I've done - I'm provided with a schedule of furlough from/to dates and what employees are to be paid, and prepare the claim based on that.

It just popped into my head that I hope the written communications with employees are all in order as they are an essential part of the eligibility to make a claim.

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By Cheshire
21st May 2020 12:36

Ive told my clients that they have and must understand their legal responsibility to their employees and ensure that the correct processes have been followed for anything that is considered a change in contract then pointed them at Gov.uk (mentioning how week that is!) and ACAS and suggesting they take legal advice as they see fit and that I am not qualified to provide such.

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