Thursday, April 25, 2024
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Government financial support

The government is providing financial support for employers and employees affected by the coronavirus disruption.

Furloughed workers

The government will be introducing the ‘Coronavirus Job Retention Scheme’. This means employers can access financial support to continue paying the wages of employees who are temporarily sent home because there’s no work. These staff are called ‘furloughed’ workers.

To access the scheme, employers will need to designate relevant staff as furloughed workers. The employer needs to get agreement from the worker to do this, unless it’s covered by a clause in the employment contract.

The employer can decide who to designate as a furloughed worker. If an employee disagrees with their employer’s decision they’ll need to talk to their employer and try to come to an agreement.

Any furlough agreements should be in writing. It’s a good idea to include:

• the date furlough starts

• when it will be reviewed

• how to keep in contact during furlough

A worker will stay employed while they are furloughed, but they must not work.

HMRC will reimburse 80% of furloughed workers’ wage costs to employers, up to a maximum of £2,500 per month. Employers will be able to make a claim for the money once HMRC’s new system is available.

It’s up to employers whether they pay the remaining 20% of wages. They do not have to pay it.

If employers need short term cash flow support, they may be eligible for a ‘Coronavirus Business Interruption Loan’.

Find out more about the Coronavirus Job Retention Scheme and other financial support on GOV.UK.

COVID-19: guidance for employees, employers and businesses

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