FACTSHEET 3

Support for employees through the Coronavirus Job Retention Scheme

What is a furlough worker?

Definition

A furlough is a temporary leave of employees due to special needs of a company or employer, which may be due to economic conditions at the specific employer or in the economy as a whole. These involuntary furloughs may be short or long term, and many of those affected may seek other temporary employment during that time.

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.

This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1 March and is initially open for 3 months, but will be extended if necessary. HMRC will set out more details shortly.

Eligibility? 

All UK businesses are eligible.

How to access the scheme?

Your employer will need to access the scheme and will:

  • Designate affected employees as ‘furloughed workers’ and notify the employee of this change, changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.

  • Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal (HMRC will set out further details on the information required).

 

HMRC are working urgently to set up a system for reimbursement to the employer.

Call us on 0115 962 6519, for further information. All calls are diverted to voicemail so please leave a message we will call you back.

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