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.
• 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.
• 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 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.