Employers who are also licenced sponsors, have numerous staff on Tier 2 visas. Following the Government’s announcement of the Coronavirus Job Retention Scheme, employers have been unsure on whether they can furlough Tier 2 workers. We tackle this question in this article.
The CJRS is run by the HMRC, however, for Tier 2 Sponsors, they must also consider whether the Home Office permits them to reduce the salary of their workers under this scheme.
HMRC
Tier 2 workers are prohibited from relying on public funds. However, the HMRC has confirmed that CJRS is not a public fund, and as such all migrant workers can be included in this scheme by their employers.
Home Office
As a licenced sponsor, employers must abide by the sponsor duties set out in the Home Office guidance. The standard guidance normally restricts the reduction of salary for Tier 2 workers. However, the Home Office has now published guidance specifically for the Coronavirus, which confirms that sponsors are able to reduce salary of their workers, if:
- The business is unable to pay their salary, then the salary can be reduced to 80% or £2500 per month, whichever is lower
- The reduction must be justified as a part of a company-wide policy to ensure equal treatment of all workers
- The reduction must be temporary, and the salary must return to previous levels, once the [Coronavirus] arrangements come to an end.
The HMRC and the Home Office guidance, when read together, confirm that the Coronavirus Job Retention Scheme is open to Tier 2 workers.
If the employer does not intend on topping up the salary, we suggest reporting the reduction of salary on the Sponsor Management System (SMS) providing clear reasons under Coronavirus Home Office policy.