Some bullet points from the government website about Coronavirus Job Retention Scheme and furloughing employees although nothing about holiday entitlement!
Some bullet points from the government website about Coronavirus Job Retention Scheme and furloughing employees although nothing about holiday entitlement!
Open to all employers who had a PAYE payroll scheme at 28 February 2020.
Can cover businesses, charities, recruitment agencies and public sector.
Covers full-time, part-time, agency contracts and employees on flexible hours and zero hours contracts
Employees have to have been on your payroll on 28 February 2020 – if you made them redundant since then and rehired them they are eligible still.
Employees can not work for you while furloughed.
The minimum period of furlough leave is 3 weeks and the grant can only be claimed once every 3 weeks even if you pay weekly.
Employees will still have tax and national insurance deducted from the payment made to them.
Employees can claim 80% (capped at £2,500) plus associated employers national insurance contributions and minimum pension auto enrolment costs.
Employers can top up to 80% and pay higher pension contributions but these will not be covered by the grant.
Pay for those who pay varies is calculated as:
For those with 12 months employment – the higher of the same month’s earnings the previous year or average monthly earnings from the 2019-20 tax year.
For those with less than 12 months employment – average of monthly earnings since they started work.
Does not include commission, bonus or fees.
Can go below national minimum wage or national living wage as they do not apply as employees are not working – but if they do any training while off that time must be paid at NMW/NLW.
Employees on statutory sick pay or self-isolating can be furloughed after that.
Employee shielding those at higher risk can be furloughed.
Employees with more than one job can be furloughed from each job separately and each employer deals with their own claim.
Employees on furlough can do Volunteer work or training as long as it does not provide services to generate you revenue.
Employees on maternity leave / adoption / paternity / shared parental leave can stay on that – BUT if you pay enhanced payments these are covered and can be claimed under the scheme.
Payments received into the business must be included as income in the accounts.
No fees can be charged to employees the full grant for the gross pay must be paid to the employee (subject to tax and NI deductions).
The scheme is running for 3 months from 1 March.
All employment rights continue during furlough.
Employees have to be notified in writing and you should keep a copy.