This webinar delivered on 9th April 2020, provided guidance and support for charities on the process of furloughing staff, including basic FAQ’s, strategic considerations and organisational requirements to begin the process. The webinar was delivered by – Nasir Rafiq (Chartered Accountant) and Omar Rashid (MCIPD). Facilitated by Madiha Raza (Head of WF-Aid and Trustee of the Muslim Charities Forum).
Additional notes from panelist Omar Rashid: It should be noted that after the webinar further guidance was released regarding Furlough from the Government, in summary these are:
The big ones:-
• Employers are free to switch employees from sick pay to furlough and vice versa, although this should not be abused by using furlough to ‘top up’ small amounts of SSP for short term absences. Also, clarification that employers can furlough ‘shielding’ employees, and they do not have to be placed on sick pay
• Confirmation that those with certain work visas will not be regarded as breaching their visa conditions if they receive funds under the furlough scheme: “Grants under the scheme are not counted as ‘access to public funds’, and you can furlough employees on all categories of visa.”
• Employers of newly TUPE’d employees can put them on furlough: “A new employer is eligible to claim under the CJRS in respect of the employees of a previous business transferred after 28th February 2020 if either the TUPE or PAYE business succession rules apply to the change in ownership.”
The little ones:-
• Clarification that the reclaimable NI and pension elements are on the furlough salary (80%), not normal salary.
• Stating that employees cannot work for organisations that are linked to the employer, as well as not working for the employer, when on furlough.
• Businesses that engaged in payroll consolidation schemes after 28 February can place employees on furlough.
• No part of the reclaimed grant can be siphoned off to fund benefits; the entire grant must be paid to the employee (with no deductions for fees, administration charges etc)
Finally, I want to re-iterate caution regarding Imams doing ‘spiritual talks’ in a volunteered capacity whilst on Furlough. I would avoid this. It could be argued that spiritual talks are in the main regular duties of the Imam so begs the question why is he required to be Furloughed? Do not risk jeopardising the Furlough claim and extensive auditing by HMRC.
Disclaimer: The information contained in this webinar is for general information purposes only. The information is provided by Omar Rashid and Nasir Rafiq and while MCF endeavors to ensure the information provided is up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information provided in the webinar, presentations and attachments provided. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of employment, income, or profits arising out of, or in connection with the use of this webinar and related materials. Muslim Charities Forum 09/04/2020