It seems like some people haven’t understood that, no matter how little cash you have, you should still join the Job Retention Scheme (JRS) and put all of your people on furlough.
The key point is, if you don’t have any or enough cash to pay your March payroll, it doesn’t matter. You can still put everyone on furlough. Just do it. It’s free money for your people from the Government. Work out what they all should get and agree with them that they accept the furlough deal. Explain to them that you don’t have the cash to cover what they are due right now but that you will have it at the end of April when you receive the ‘reimbursement’ from HMRC. When you do, pay your people. It will feel good.
If you have some cash, then consider making staged payments or offer loans or subs. Do what you can but, whatever you do, get everyone in the fucking boat.
I’m fairly sure this is NOT what the Treasury envisioned any of us doing but, if this is the only way to get all your people furloughed then why not do it? If they subsequently decide they don’t like this way, we’ll deal with that when it happens.
I know businesses are also unclear about holiday entitlements of furloughed staff. I’m sure many of you are taking your own advice from employment law specialists, but we are asking our furloughed staff to agree to three things: to being out on furlough; that, during the furlough period they will not accrue holiday pay; and that during the period any accrued holiday pay will run down to zero. Anyone not agreeing to these terms doesn’t go on Furlough.
At the same time, we are encouraging our team to make the most of their time off and, in particular, to consider volunteer work. There is a lot we all need to do to get through this.
Also, there is still an issue with tronc in the JRS for some people. My view on this is clear, although it is no guarantee of what HMRC may decide. I am adamant that tronc is included in the JRS and that it was the clear intention of the Chancellor, and is clear from the Guidance, that it should be. I’m adamant for many reasons, but these are the main three:
1. Tronc pay is already part of the PAYE system. If some of your chefs are 50% salary and 50% tronc, then you should pay them their 100% (or 80% of that).
2. It has NOT been specifically excluded in the Guidance, although other things clearly have – ‘fees, commission and bonuses should not be included’. If there are any lawyers in the house, then you'll know that one of the first things you learn at law school is - if it’s not specifically excluded, it’s included. It would have been easy to add in ‘tronc’ so that the Guidance would have read ‘fees, commission, tronc and bonuses should not be included.” But they didn’t. Because it’s included.
3. I’m not telling you why. Just believe.
If you’re still too wary of the risk and don’t want to pay half of what your 50/50 chefs are due yet, because you might not get the tronc bit back, then withhold the tronc bit until you get reimbursed in a few weeks.
No risk, 100% reward. Easy.
Jonathan Downey is co-founder of London Union. Follow Jonathan on Twitter @DowneyJD