Updated 12th May 2020
What Does it Mean to be ‘Furloughed’?
On 20 March 2020 the government created the new Coronavirus Job Retention Scheme. The scheme allows employers to place those staff, who would otherwise have no work, on ‘furlough’ leave. Being furloughed means that employers are able to keep employees on the payroll by claiming 80% of their wages (capped at £2,500) from HMRC.
How Much Will I be Paid on Furlough Leave?
Your employer can pay you 80% of your monthly earnings, up to a maximum of £2,500 per month (gross). Your employer can top up the remaining 20%, however, they are not legally obliged to do so. If your monthly earnings vary, your employer will pay you the higher of either:
- The amount you earned in the same month last year; or
- The average of your monthly earnings over the last year or since you started work.
Will Commission be Included in the Calculation of My Furlough Pay?
Your furlough pay can include regular payments such as overtime, fees and commission payments if they are contractual and your employer is required to pay them. However, discretionary bonuses, tips and commission payments are excluded.
How Long Can I be Furloughed For?
You can be furloughed for a minimum period of three weeks. This means that your employer can rotate you in and out of furlough leave or keep you on furlough leave whilst the scheme is open. The Scheme has just been extended until October 2020. Until the end of July there are no changes. From August to October 2020, the scheme will continue but with greater flexibility to support the transition back to work.
Can I Ask to be Furloughed?
Yes, but your employer does not have to agree. It is still open to them to make redundancies or ask you to agree to reduced hours or pay instead.
Can I Refuse to be Furloughed?
Yes, you have to give consent to be furloughed as with any variation to your employment contract. However, there is a risk that if you refuse, your employer may have no option but to terminate your employment by reason of redundancy. Your employer can do this fairly providing there is a genuine redundancy situation and they follow a fair process.
Can I Continue to Work for my Employer Whilst on Furlough Leave?
No, you cannot undertake any work for your employer whilst on furlough leave that generates revenue for the company. You can, however, undertake training or volunteer work.
Depending on the terms of your contract of employment, you may be able to work for a different employer during your period of furlough leave.
Can My Employer Make Me Redundant Whilst I am on Furlough Leave or at the End Of It?
Yes, your employer can still make you redundant either during or after furlough leave, providing they follow the usual legal procedure.
I left my job before the Scheme was announced. Can I return to my old employer and be placed on Furlough leave?
Employees who were on the company payroll on 19 March, but have since left that job for whatever reason (not just redundancy) can be re-employed by their old employer and placed on furlough (provided the employer submitted real time information (RTI) about the employee to the HMRC on or before 19 March). However, there is no obligation on the employer to re-hire you.
I started work after 19 March 2020. Am I eligible for furlough pay from my new employer?
In order to be eligible for the furlough scheme you need to have been on your employer’s payroll as at 19 March 2020. Unfortunately as you started employment after this you are unlikely to have been on the payroll at the required date, and so your employer would not be able to access the Government’s furlough scheme.
I am an Agency Worker – Am I Eligible for the Furlough Scheme?
Providing you were on your employer’s PAYE payroll on 19 March 2020, you are eligible to be furloughed if you are a full-time or part-time employee, an agency worker or on a flexible or zero-hours contract. As an agency worker, your employer can put you on furlough leave if you were on the company’s PAYE payroll. If you were employed by an agency and paid through the agency’s PAYE payroll, you may be furloughed by the agency.
I Am Currently Off Sick and on SSP. Can I Be Put on Furlough Leave?
You cannot be on furlough leave whilst you are on SSP. Your employer can put you on furlough after the sick pay period if there is no work for you to do and you would otherwise be laid off or made redundant.
I Have Been Identified as Extremely Vulnerable and Advised by the NHS to ‘Shield’ for 12 Weeks. Should I be Paid SSP or Put on Furlough Leave?
If you have been advised to ‘shield’ for 12 weeks your employer can put you on furlough leave immediately in line with public health guidance.
Can I be Furloughed Whilst on Maternity Leave?
Yes, your employer can decide to furlough you whilst you are on maternity leave. If you are only eligible for Statutory Maternity Pay, you will continue to receive this in the usual way. If you are paid enhanced contractual maternity pay, your employer can claim this through the Scheme as wage costs.
I Would Like to be Furloughed as I Have Children at Home to Look After. Can I Be Furloughed?
Employees can be furloughed if the purpose is to enable them to care for children or other dependants. Therefore, if you are struggling with childcare, you can ask to be furloughed. It is of course your employer’s decision whether to furlough you.
I am a Company Director. Can I Be Placed on Furlough Leave?
Company directors can be furloughed as long as they are not undertaking any work for the Company. Company Directors can still continue to fulfil their statutory and legal duties, as long as they do no more than would reasonably be judged necessary for that purpose. Furloughed directors need to proceed with caution and ensure that they are not undertaking work beyond their legal duties during the furlough period.
Can I Still Car Share to Get to Work?
Current government guidance is that you should only travel in a vehicle when absolutely necessary (which can include travelling to work) and if you do you should only travel with those living in the same household as you.
Everyone is also being told to practise social distancing, namely to remain two metres apart wherever possible. Public Health England has confirmed that this includes when travelling to work. As a two metre distance is unlikely to be possible inside most cars it is therefore advisable not to car share whilst the current social distancing measures are in force.
I am Self-Employed. Can I Be furloughed?
Unfortunately, the self-employed are not eligible for the furlough scheme. However, the government has announced the Self-employed Income Support scheme which is a package to help the self-employed cope with the financial impact of COVID-19. This is eligible to those who make the majority of their income from self-employed work and with trading profit of up to £50,000. Only those who have submitted a tax return for 2018-19 will be able to apply. If a tax return has not been submitted, people are allowed a further four weeks to submit and still qualify.
A grant will pay the self-employed person 80% of their average monthly profit over the last three years (up to a maximum of £2,500 per month).