What is a 'furloughed' worker?

A furloughed employee is one who has been given a temporary leave of abscence due to the needs of an employer.   This means a furloughed worker can return to work in the future and will get paid.  The salary payment  could be at 80% which the government are covering and it is up to the employer if they wish to cover the 20% to make up the salary. 

The  scheme is said to be going to run for 3 months from 1st March but they may potentially extend it.  The maximum amount of time a worker can be furloughed is one year.

Specific Covid-19 plans..

If an employer cannot cover staff costs due to COVID-19, they may be able to access support to continue paying part of staff wages, to avoid redundancies.

If an employer intends to access the Coronavirus Job Retention Scheme, they will discuss with staff becoming classified as a furloughed worker. This would mean that employees are kept on the payroll, rather than being laid off.

To qualify for this scheme, employees should not undertake work for the employer while they are furloughed. This will allow the employer to claim a grant of up to 80% of  wages for all employment costs, up to a cap of £2,500 per month.

As a payroll service provider we will be keeping you up to date with the latest developments and hope to find out exactly how to apply very soon.
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