Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
4 minute read
On the 26th March 2020, the Government released much needed further guidance on the Coronavirus Job Retention Scheme (Furlough Leave). This temporary scheme is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).
It is being introduced to help employers avoid redundancies due to COVID-19. Employers will be able to use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Fees, commission and bonuses must not be included. HMRC are urgently trying to design this portal to manage claims via this scheme and they hope it will be up and running in April. It is not clear whether or not the Government will introduce specific legislation on this scheme and as a result, this scheme is subject to change. In the meantime, employers can start to furlough employees but there are some key points you need to make sure you are aware of before going ahead to limit the risk to you as an employer.
Shaw Gibbs can provide you with a Furlough Agreement template tailored to your business along with a meeting script to use with employees (who do not have a lay off short term working clause in their contracts) and we can advise you on who is eligible and how the scheme will work.
Below are some points for employers to consider: