Coronavirus Job Retention Scheme/Furlough leave

Sheila Attwood Editor's message: The Coronavirus Job Retention Scheme is part of a package of support for businesses affected by the coronavirus (COVID-19) crisis.

The scheme is intended to support employers to continue paying employees who would otherwise be made redundant or put on an unpaid period of lay-off as a result of the coronavirus crisis. It is open to all employers with a PAYE scheme, including public-sector employers and charities.

Under the scheme, if a worker is designated as a "furloughed worker" during the coronavirus outbreak, a grant is available from HM Revenue and Customs (HMRC) to reimburse you for 80% of the wage costs relating to the worker, up to a maximum of £2,500 per month. Payments can be backdated to 1 March 2020.

The scheme will run until the end of October 2020. Furloughed employees will continue to receive 80% of their salary, up to £2,500 per month. However, the level of contribution that employers can claim under the scheme will diminish on a phased basis until the scheme closes. From July some flexibility has been introduced into the scheme allowing, for example, employees to work part time while remaining on furlough for the hours they do not work.

Sheila Attwood, managing editor, pay and HR practice

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