Advice on Furlough

Advice on Furlough

Furlough

This information was produced 23/3/20, it may change on a daily basis.

For furlough to apply, the employee must be sent home without work. This would not apply to employers where the employee continues to work from home.

Which employers can claim it?

Any business can claim furlough, the only criteria is that you have employees and they are sent home with no work because of the current crisis.

Can employers insist on putting someone on Furlough?

If you have a lay off or short time working clause in your contract, then yes you can.

If you have no lay off clause in the contract, technically consent will be needed. By not adhering to furlough, the employee risks being made redundant. In current circumstances you would expect all employees to comply. If you do have to go down the redundancy route, please make sure you follow normal employment legislation and contact an HS Specialist before taking any action

How much will employees get?

The government will fund 80% of wages up to a maximum of £2,500 per month for any employee on the payroll on 1 March 2020. Payments will be available from the end of April and backdated to 1 March 2020.

What will be the process for getting the money back?

The government are setting up a system, this is not currently available. As soon as we have further information we will let you know.

  1. Select your employees to be placed on furlough.
  2. Get the employees to sign an agreement to be on furlough.
  3. Send the employee home, they must not be asked to do any work during this period.
  4. The employer should register for furlough pay on the Government system when this becomes available (hopefully this will be soon).
  5. It is your choice whether you choose to top up your employees pay to 100% at your cost. If you are choosing not to do this, try to get employees to agree to 80% pay when signing your furlough agreement, this will avoid future unlawful deduction of wage claims (small risk).

NOTE: Please make sure you still comply with all employment legislation, to avoid risk of a claim later.

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