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NFDA Welcomes Further Details On Job Retention Scheme

“Following our lobbying efforts, it is extremely positive that the Government has released further details about its Job Retention Scheme.  NFDA is taking immediate legal advice to clarify a number of elements, particularly around ‘compulsory commission payments’, we will keep dealers updated”, said Sue Robinson, Director of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK.

The Government’s Job Retention Scheme was launched to assist all UK employers to access support to continue paying part of their employees’ salary for those employees that would otherwise be laid off during the Coronavirus outbreak.

Today, the Government has announced further details on the scheme:

  •          Dealers can claim for any regular payments they are obliged to pay their employees. This includes wages, past overtime, fees and compulsory  commission payments.
  •           Both the Apprenticeship Levy and Student Loans should continue to be paid as usual as the grants from the scheme do not cover these.
  •          Any employees that dealers place on furlough must be furloughed for a minimum period of three consecutive weeks. Employees can be furloughed                 multiple times, but each separate instance must be for a minimum period of three consecutive weeks.
  •          If contractually allowed, employees can work for another employer whilst the dealer has placed them on furlough.

Sue Robinson added, “NFDA has repeatedly highlighted to the Treasury how critical it is to include commissions and bonuses in the scheme as the majority of people employed in the automotive sector rely on these regular earnings in addition to their basic salary.

“It is encouraging to see that the Government is listening to our concerns and taking action to support businesses and the thousands of people employed in our sector”.

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