A new Treasury Direction (No. 2) has been issued. This makes a small but significant change to the eligibility to include employees in a CJRS claim if they are transferred after 28 February 2020.
A new employer (i.e. the transferee) can now make a CJRS claim if the employee’s employment transferred after 28 February 2020. This is whether or not an RTI PAYE submission was made before 19 March 2020 (i.e. whether or not the new employer put the transferred worker through its payroll before the 19 March 2020).
The requirements to be a “relevant employee” are in §9.4 of the new Treasury Direction and are (in summary):
(a) on 28 February 2020 the employee was employed by the transferor.
(b) After 28 February 2020 the business transferred to the transferee and the employee remained employed.
(c) The transferor had a qualifying PAYE scheme at the time of the transfer.
(d) Any of the following applies: (i) The change of employer is one that for the purposes of PAYE is not treated as a cessation of employment (i.e no P45 is issued); (ii) the transfer did not operate to terminate the employee’s contract of employment (iii) the transfer did not break the continuity of employment.