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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?
(about 16 hours 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.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.
What is furlough?What is furlough?
Furlough supports firms badly 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 - was 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 for 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.
All employees furloughed at any one time must be claimed for at once. 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 they 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 such as tips and optional bonuses. Furlough covers overtime and commission payments built in to an employee's salary, but not discretionary payments like tips and optional bonuses.
Employers must continue with the national insurance and pension contributions payments on behalf of furloughed employees. 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.
Any pension or national insurance payments above the statutory minimum cannot be claimed for. 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 you claim must be paid to your workers, or to cover their statutory national insurance and pension payments, even if you are 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.
It takes about six working days to process a claim, so if companies apply early this week they should be able to pay April's wages.
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.
Chancellor Rishi Sunak said 140,000 firms had applied for the scheme on its first day, which will help pay the salaries of over a million workers.Chancellor Rishi Sunak said 140,000 firms had applied for the scheme on its first day, which will help pay the salaries of over a million workers.
"HMRC will continue to provide updates on the number of people furloughed," said Mr Sunak.
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.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.
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.
Initially the scheme only supported those on an employer's PAYE payroll on 28 February 2020, but the cut off date was extended to 19 March. The scheme covers those on an employer's PAYE payroll by 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.
The minimum amount of time you can be furloughed for is three weeks, and you can be furloughed more than once. You must be furloughed for at least three weeks, and can be furloughed more than once.
If you have been made redundant since 19 March, your former employer can rehire you under the furlough scheme. But employees hired for the first time after that date are not eligible. 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.
Any UK organisation with employees can apply, including for workers who are foreign nationals. But in practice it will mainly be private sector businesses and charities that make a claim. Any UK organisation with employees can apply, but it will mainly be private sector businesses and charities making a claim.
Apprentices can be furloughed in the same way as other employees, and still continue their training. And an individual can furlough an employee, such a nanny, but only if they are paid through PAYE. Apprentices can also be furloughed and continue their training. An individual can furlough an employee, such 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 and can be placed on furlough when you recover. 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 shielding because of health concerns or have childcare or other caring responsibilities, you are also eligible for furlough. Staff on maternity, paternity, adoption or shared parental leave will continue to 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.
If your wages differ from month to month, your company should base your salary on what you earned in the same month the year before, or your average monthly earnings from the 2019-20 tax year, whichever is higher.
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 do any work for your employer if you have been furloughed. You can't work for your employer if you have been furloughed.
If you have more than one employer, you can receive furlough from any of them, up to a maximum of £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 also continue working for any that still need you or work for a new employer, provided you are not breaching any existing contracts or coronavirus restrictions. 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 use this time to 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.
Some firms haven't furloughed staff but have asked them to work reduced hours for reduced pay, which they will have to fund as normal.
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, although they 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.