On Friday 17th April (the working day before the HMRC portal to claim under the CJRS opened), the Government produced more detailed guidance for employers in the education sector about access to the CJRS.
CJRS guidance for employers in the education sector
Previously, the original CJRS guidance referred to the CJRS being available to all employers. Later versions contradicted that by saying that the expectation was that organisations in receipt of continuing public funding for a position would not be expected to furlough that position.
State schools and other publicly funded employers would not have needed to give much consideration to accessing the CJRS because they are still providing services for vulnerable children and the children of key workers.
For them the new guidance, makes it clear that they have the option to consider furlough for employees, who are in usually ancillary roles, that come from a separate private income stream (such as catering or sports facilities letting) which have been impacted by the coronavirus or partial closure.
The guidance states that:
“all relevant organisations should first consider any potential options to reduce their operating cost and secure commercial loans (including CBILS, CLBILS and CCFF outlined above) before seeking to access grant paying schemes like the Coronavirus Job Retention Scheme… Educational settings that are in receipt of some public funding should only furlough employees, and therefore seek support through the Coronavirus Job Retention Scheme, if they meet the following conditions:
- the employee works in an area of business where services are temporarily not required and where their salary is not covered by public funding
- the employee would otherwise be made redundant or laid off
- the employee is not involved in delivering provision that has already been funded
- (where appropriate) the employee is not required to deliver provision for a child of a critical worker and/or vulnerable child
- the grant from the Coronavirus Job Retention Scheme would not lead to financial reserves being created”
The less well received element of the guidance is the impact on private businesses operating in the education sector.
Private sector businesses operating in the education industry
For private sector nurseries and Early Years providers, the guidance is even more specific and reduces access to the CJRS even further.
As well as ensuring they can meet the above criteria, employers can only “access the CJRS to cover up to the proportion of its paybill which could be considered to have been paid for from that provider’s private income”, this means that credit will first need to be given for the Government’s continued funding for free early years entitlement places for 2, 3 and 4 year olds.
Private businesses may have already furloughed staff in reliance on the CJRS based on the early guidance but will now have to reconsider whether they can proceed with an application on the HMRC portal to be reimbursed for these costs, based on the extra criteria and requirements set out in this guidance.
The reaction from the sector has been one of dismay and uproar. Thousands have already signed an online petition asking the Government to reconsider the position.
How Nelsons can help
Laura Kearsley is a Partner in our expert Employment Law team.
For further information on the CJRS, furlough leave or any related subjects, please contact Laura or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.