The government have confirmed that furlough and the Coronavirus Job Retention Scheme can be applied under a number of transfer situation.
April is a popular time for the transfer of employees either within pre-existing business splits or under new ownership arrangements.
The government confirm that:-
Employee transfers under TUPE and on a change in ownership
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.
Read more guidance on TUPE rules.
Read more guidance on business succession.
Payroll Consolidation
Where a group of companies have multiple PAYEschemes and there is a transfer of all employees from these schemes into a new consolidated PAYE scheme after 28 February 2020, the new scheme will be eligible to furlough those employees and claim the grants available under the CJRS.
Administrators
Where a company is being taken under the management of an administrator, the administrator will be able to access the Job Retention Scheme. ]Where] there is a reasonable likelihood of rehiring the workers. For instance, this could be as a result of an administration and pursuit of a sale of the business.
PAYadvice.UK 12/4/2020