What is Furlough?
For employers who are struggling with lost income, and can’t afford to pay their current employee salaries, but don’t want to lose valuable employees for the future, putting them on temporary ‘furlough’ is the governments emergency solution.
If you need to furlough any or all of your employees, start the conversation quickly once you have identified who is to be part of the scheme you will need to classify your employees as ‘furloughed’. Effectively laid off because of no work. Everyone in the leisure sector was effectively’furloughed’ as of Saturday, as are any other sectors. The aim is to keep jobs and businesses alive by following this procedure .
From the the government website
If you as an employer cannot cover staff costs due to COVID-19, you may be able to access support to continue paying part of their wages, to avoid redundancies.
If you intend to access the Corona-virus Job Retention Scheme, you will need to discuss with your employees the prospect of them becoming classified as furloughed workers. This would mean that they are kept on your payroll, rather than being laid off.
To qualify for this scheme, employees should not undertake work for you while they are furloughed. This will allow you as the employer to claim a grant of up to 80% of their wages for all employment costs, up to a cap of £2,500 per month.
They will remain in your employment while furloughed. Your can choose to fund the difference between this payment and their salary, but you do not have to if you can’t.
If an employee’s salary is reduced as a result of these changes, they may be eligible for support through the welfare system, including Universal Credit.
The Coronavirus Job Retention Scheme is intended to run for at least 3 months from 1 March 2020, but will extend if necessary.
More info coming soon…
More specific detail is not yet available, however HMRC are working urgently with the Government to hopefully implement the scheme by 5th April 2020, with the furlough period backdated to 1st March where appropriate.This will allow you to bring previously laid-off employees back on to your payroll if you wish to.
How we can work together….
If you need to furlough your employees and we run your payroll please let us know as soon as possible.
As soon as we can access specifics about how the process will work we will let you know. However this will be a new process to you and is also a new process to us, so please be patient with our payroll team. We will be working as quickly as possible to help and advise all our clients and need your understanding and support.
We will keep updating you as further government updates are released
In the meantime please stay safe and healthyReturn to newsletters