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Coronavirus: What does it mean if I've been furloughed by work? Coronavirus: What does it mean if I've been furloughed by work?
(14 days later)
Until recently, many people in the UK had never heard of furlough. But the impact of coronavirus on the economy means over the next few months, millions of workers will rely on the government's job retention scheme. The government is now paying the wages for nearly a quarter of UK jobs under its furlough programme.
The scheme is designed to help people put on leave due to the coronavirus pandemic.
There have been more than 6.3 million claims - equal to 23% of the employed workforce.
What is furlough?What is furlough?
Furlough supports firms hit by coronavirus by temporarily helping to pay the wages of people who can't do their jobs.Furlough supports firms hit by coronavirus by temporarily helping to pay the wages of people who can't do their jobs.
It allows employees to stay on the payroll, even though they aren't working.It allows employees to stay on the payroll, even though they aren't working.
The company can top up this pay if it chooses and must let employees know they have been furloughed.The company can top up this pay if it chooses and must let employees know they have been furloughed.
The scheme - backdated to 1 March - opened to applications on 20 April and will run until at least the end of June.The scheme - backdated to 1 March - opened to applications on 20 April and will run until at least the end of June.
How can my business apply?How can my business apply?
Check you are eligible for the scheme, and then work out how much to claim using the government's online calculator.Check you are eligible for the scheme, and then work out how much to claim using the government's online calculator.
You can claim 80% of your employee's wages - up to a maximum of £2,500 per employee, per month before tax, or £576.92 a week.You can claim 80% of your employee's wages - up to a maximum of £2,500 per employee, per month before tax, or £576.92 a week.
If employees are not paid set amounts each month - for example they returned from maternity leave, or receive top up pay - you will need to calculate your claim manually, or seek professional advice. If employees are not paid set amounts each month - for example if they have returned from maternity leave, or receive top-up pay - you will need to calculate your claim manually, or seek professional advice.
Furlough covers overtime and commission payments built in to an employee's salary, but not discretionary payments like tips and optional bonuses. Furlough covers overtime and commission payments built in to an employee's salary, but not discretionary payments such as tips or optional bonuses.
Employers must still pay national insurance and pension contributions payments for furloughed employees. The statutory minimum for these can also be claimed back.Employers must still pay national insurance and pension contributions payments for furloughed employees. The statutory minimum for these can also be claimed back.
All the money claimed must be paid to your workers, or to cover their national insurance and pension payments, even if a firm is in administration.All the money claimed must be paid to your workers, or to cover their national insurance and pension payments, even if a firm is in administration.
HMRC will check your claim, and pay you through a UK bank account, if you are eligible. Claims take about six working days to process.HMRC will check your claim, and pay you through a UK bank account, if you are eligible. Claims take about six working days to process.
Which companies are furloughing workers?Which companies are furloughing workers?
Coronavirus restrictions mean the work of many firms has come to a standstill. Pubs, restaurants, cafes, travel firms and estate agents are among those hit.Coronavirus restrictions mean the work of many firms has come to a standstill. Pubs, restaurants, cafes, travel firms and estate agents are among those hit.
About 185,000 firms applied for the scheme on its first day, affecting 1.3 million workers and costing the Treasury £1.5bn. The Government says about 800,000 employers have reported furloughing workers since 20 April, when the programme started.
An estimated one in four businesses had shut temporarily within the first two weeks of lockdown, while those that stayed open furloughed an average of 21% of their workforce. It said it had distributed £8bn so far, with an average pay-out of £1,269 - about half of the £2,500 maximum. The scheme is due to run through June, suggesting the total cost could exceed £30bn.
Clothing chains Oasis and Warehouse have furloughed staff after going into administration, while Topshop owner Arcadia has also used the scheme.
Can I be put on furlough?Can I be put on furlough?
Potentially yes, if your company can't give you work to do because of the coronavirus outbreak.Potentially yes, if your company can't give you work to do because of the coronavirus outbreak.
The scheme covers those on an employer's PAYE payroll by 19 March 2020. The scheme covers those who were on an employer's PAYE payroll on 19 March 2020.
This includes full-time and part-time workers, and employees on flexible, zero-hour or agency contracts.This includes full-time and part-time workers, and employees on flexible, zero-hour or agency contracts.
You must be furloughed for at least three weeks, and can be furloughed more than once. You must be furloughed for at least three weeks, and you can be furloughed more than once.
If you have been made redundant since 19 March, your former employer can rehire you under the scheme. But newly-hired employees are not eligible. If you have been made redundant since 19 March, your former employer can re-hire you under the scheme. But newly hired employees are not eligible.
Any UK organisation with employees can apply, but it will mainly be private sector businesses and charities making a claim.Any UK organisation with employees can apply, but it will mainly be private sector businesses and charities making a claim.
Apprentices can also be furloughed and continue their training. An individual can furlough an employee, such a nanny, if they are paid through PAYE. Apprentices can also be furloughed and continue their training. An individual can furlough an employee, such as a nanny, if they are paid through PAYE.
Will I still get sick pay and a bonus?Will I still get sick pay and a bonus?
Anyone placed on furlough has the same employment rights as before. If you are ill you are eligible for statutory sick pay or can be placed on furlough.Anyone placed on furlough has the same employment rights as before. If you are ill you are eligible for statutory sick pay or can be placed on furlough.
If you are on unpaid leave, shielding for health reasons or have caring responsibilities, you are also eligible. Staff on maternity, paternity, adoption or shared parental leave will still receive statutory pay from the government.If you are on unpaid leave, shielding for health reasons or have caring responsibilities, you are also eligible. Staff on maternity, paternity, adoption or shared parental leave will still receive statutory pay from the government.
Employers do not have to top up salaries that no longer reach the minimum wage.Employers do not have to top up salaries that no longer reach the minimum wage.
Can I work or volunteer if I've been furloughed?Can I work or volunteer if I've been furloughed?
You can't work for your employer if you have been furloughed.You can't work for your employer if you have been furloughed.
If you work for more than one firm, you can receive furlough from any of them, up to £2,500 a month per employer.If you work for more than one firm, you can receive furlough from any of them, up to £2,500 a month per employer.
You can continue working for any that still need you or for a new employer, provided you are not breaching any existing contracts.You can continue working for any that still need you or for a new employer, provided you are not breaching any existing contracts.
You can volunteer in the community or even for your company as long as you aren't creating revenue or providing a service. Employers can give employees additional training, but must top up furlough payments if they do not reach minimum wage.You can volunteer in the community or even for your company as long as you aren't creating revenue or providing a service. Employers can give employees additional training, but must top up furlough payments if they do not reach minimum wage.
Is my job guaranteed when furlough ends?Is my job guaranteed when furlough ends?
Companies don't have to keep on any employees when furlough ends, and cannot use these payments to subsidise redundancy packages.Companies don't have to keep on any employees when furlough ends, and cannot use these payments to subsidise redundancy packages.
The hope is that by the time the scheme ends, restrictions will have lifted and businesses can start paying full salaries again.The hope is that by the time the scheme ends, restrictions will have lifted and businesses can start paying full salaries again.