Question to the HM Treasury:

To ask Her Majesty's Government, as the Coronavirus Job Retention Scheme does not require an employee to sign up to a salary reduction in order for the employer to make a claim for the grant, whether HMRC expect employers and employees to have entered into written agreements either for those who have been furloughed on 80 per cent of their pay or those who are still working but have voluntarily taken a temporary reduction in pay; and, if not, what evidence HMRC will require.

In order to be eligible for the grant, employers must confirm in writing to their employee that they have been furloughed. If this is done in a way that is consistent with employment law, that consent is valid for the purposes of claiming the CJRS. Collective agreement reached between an employer and a trade union is also acceptable for the purpose of such a claim. There needs to be a written record, but the employee does not have to provide a written response.

Those who have voluntarily taken a reduction in pay and are still working do not meet the eligibility requirements of the CJRS and therefore are not furloughed according to the terms of the scheme.

As the scheme is administered through existing PAYE, the employee does not need to take further action.

Detailed step by step guidance for employers is available on GOV.UK.