What is the Job Retention Scheme?
In order to minimise the need for businesses to make redundancies due to workplace closures and reductions in business, the government introduced its coronavirus Job Retention Scheme on Friday 20 March.
Under the scheme, HRMC will reimburse 80% of ‘furloughed’ workers’ wages up to a cap of £2,500 per month.
What is a Furloughed Worker?
You should identify which roles may be designated in your business as ‘furloughed’ with the employee’s agreement. This will be roles where you are unable to provide work, there’s reduction of business or operations, or inability for staff to work from home due to their roles. The scheme does not cover staff who are off on sickness leave.
What is the Benefit of Furloughing Staff?
It saves the business needing to make redundancies and helps with the retention of your employees’ jobs during this period. Your employees will continue to receive pay under the scheme through government funding. Employee terms and conditions will also be unaffected whilst they are furloughed, for example, annual leave will continue to accrue.
How Long Does the Scheme Last?
The scheme can be backdated until the start of March and is proposed to go on until May, although this may be extended.
What Do I Need to Do If I Need to ‘Furlough’ Staff?
Next steps would be to contact HRMC. A new online portal and process details are to be confirmed by HRMC in due course. You should inform your affected employees and follow up in writing detailing what being ‘furloughed’ means for them. Please contact EmployAssist for further advice on this process and for bespoke letters.