The Furlough Process for Employers
Posted on 26th March 2020 at 10:46
We were delighted when the government announced details of the Coronavirus Job Retention Scheme. In this email we want to give you a few more details of how to access this and who it applies to.
What is meant by ‘furloughed’ workers?
And the internet came to our rescue here. When soldiers used to be laid off between campaigns, the military would Furlough them. I.e. temporarily lay them off.
Who is eligible?
Any of your permanent employees who were on your payroll by the 29th Feb, and would have been made redundant as a result of the Coronavirus.
Can furloughed employees take on new work?
While they are furloughed they can NOT do any work for your company nor can they take on any other paid work in this time.
How much do furloughed employees get?
The government will pay 80% of an individual’s salary costs up to £2500 per month. We are waiting for clarification from the government whether that includes NI and pension contributions. You as an employer can decide whether or not to top up their salary whilst they are furloughed.
Who decides whether an individual is furloughed?
The employer decides on who will be furloughed.
Can directors of limited companies furlough themselves?
Short answer yes, if they are on the payroll as an employee. However, if they furlough themselves, technically they are not allowed to then work in the business whilst they are furloughed.
Does a furloughed employee retain their employment rights?
In short yes.
How do I furlough an employee?
Each employee must be consulted individually about them being furloughed, and then a note put on the file recording the conversation. Their status should be reviewed at least monthly.
How long does the Coronavirus Job Retention scheme last for?
It will be in place for at least 3 months and backdated to start from the 1st March 2020.
How do I tell the government about a furloughed employee?
HMRC is building an online portal now for you to do this. So, we should hopefully have details on this very soon.
How do I get my hands on the cash from the Coronavirus Job Retention scheme?
Hopefully very shortly after the online portal is ready. We will give you updates when we know.
If you want any help or clarification on any of this, please contact us on 01252 856150 or [email protected] and we will be pleased to help.
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