TUPE transfers after 28 February granted access to Job Retention Scheme
4 May: Updated guidance published on 30 April has amended the cut-off date for access to the Coronavirus Job Retention Scheme following a TUPE transfer.
Following amendments to the Coronavirus Job Retention Scheme (CJRS) guidance, claims can be made for TUPE and other transfers after 28 February 2020, rather than only after 19 March as was previously the case. The directions for the change have yet to be published.
A new employer is now eligible to claim under the CJRS in respect of the employees of a previous business transferred after 28 February 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership.
Where a group of companies have multiple PAYE schemes and there is a transfer of all employees from these schemes into a new consolidated PAYE scheme after 28 February 2020, the new scheme will be eligible to furlough those employees and claim the grants available under the CJRS.
Transfer of Undertakings (Protection of Employment) Regulations 2006 or TUPE rules, as they are more commonly known, apply to organisations of all sizes and protect employees' rights when the organisation or service they work for transfers to a new employer.
The situations when the TUPE regulations may apply are:
- business transfers, where part or all of a business either moves to a new owner or merges with another business, and there is then a new employer
- service provision transfers, such as where activities are outsourced.
Other changes in the CJRS updated guidance
Other changes made to the updated CJRS guidance pages include:
- parental bereavement leave is added to the statutory leave section
- confirmation that company directors with an annual pay period are eligible to claim, but only if they have notified a payment to HMRC on an RTI submission on or before 19 March 2020 which relates to a payment of earnings in the 2019/20 tax year.
- clarifying that CJRS grants are not classed as state aid
- parental bereavement leave is added to the statutory leave section.
- the calculator can't be used for those who "have an annual pay period"
- the June daily maximum wage rates are added to the table now the scheme has been extended
- greater clarity in the employer National Insurance contributions section, confirmed the direct percentage method or tables method can be used and added new information for company directors.
- employers who have one or more employees without a National Insurance number should contact HMRC.