How to furlough employees under the Coronavirus Job Retention Scheme
Author: Darren Newman
Summary
Click on any of the hyperlinks to go to more detailed guidance below.
- Understand how the Coronavirus Job Retention Scheme operates and what wage costs can be reimbursed to employers.
- Ensure that anyone placed on furlough after 1 July 2020 has already completed a three-week furlough period by 30 June 2020.
- Be aware that furloughed employees must not undertake any work for you, other than training, during any time when they are designated as furloughed.
- Consider if it is necessary to furlough all employees at the same time.
- From 1 July 2020, ensure that the number of employees on furlough does not exceed the number that were furloughed at any one time between 1 March and 30 June 2020.
- Obtain the employee's agreement to do no work, or not to work their full usual hours, and ensure that this is confirmed in writing.
- If you are not able to top up the employee's pay, check if the contract allows the employee to be laid off without pay.
- If necessary, seek a variation in the contract to allow the employee to be paid at a reduced rate.
- If, from 1 July 2020, the employee is to be furloughed on a part-time basis, agree the hours or working pattern the employee will be required to work.
- Work out the correct sum to be claimed in respect of each employee.
- Make a claim for a government grant through the online portal for the scheme.
- Pay employees in full for any period of annual leave they take while furloughed.
- Understand the issues around furloughing employees who are on sickness absence.
- Consider how to deal with employees on maternity leave and other types of family-related leave.
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