Employer’s Guide – Coronavirus & Furlough Leave

It has been highly publicised that the Government have introduced measures with a view to enabling Employer’s to retain staff whilst the Country navigates it way through the Covid19 pandemic.

Bromleys acknowledge that there will be many questions and have therefore prepared a FAQ on behalf of Employers.

What is the Job Retention Scheme?

The scheme enables you to agree a temporary leave of absence with your employees. This period is known as Furlough Leave and is an alternative to you dismissing or laying off your staff.

Are all my workers eligible?

Furloughed employee’s must be on your PAYE payroll on 28 February 2020, however they can be engaged on any type of contract including full time, part time, agency contract or flexible and zero hour contracts.

I made an employee redundant on 1 March 2020, what can I do?

The scheme covers those employees who were made redundant since 28 February 2020. Therefore, if you made an employee redundant after this date, you can simply re-hire them and place them on Furlough Leave.

Do I have to reach an agreement with those employees who I wish to place on Furlough Leave?

Yes. Placing an employee on Furlough Leave is a change to their terms and conditions of employment. For this reason, you must agree such changes with them and preferably in writing. If an employee refuses to agree to be placed on Furlough leave, you may have to consider alternatives such as redundancy, however please contact one of our experts to discuss further.

What can I claim back?

Employers can claim back the lower of 80% of usual monthly wage costs or £2,500. In addition, you can also claim back the associated employer and national insurance contributions, together with minimum auto enrolment employer pension contributions.

Are bonuses included within the calculation?

No, bonusses and other payments such as fees and commission should not be included within the calculation.

How long is the scheme available for?

The Government have confirmed that it is available for at least 3 months starting from 1 March 2020.

Can my employee who I have placed on Furlough Leave continue to work for me?

No, your employee must not undertake any work for which they have been placed on Furlough Leave.

How long can I place an employee on Furlough Leave?

As a minimum, you have to place your employee on Furlough Leave for 3 weeks. However, this can be extended if required. It is also possible to place an employee on Furlough Leave more than once, provided that each leave period is for a minimum of 3 weeks.

I have an employee who is self-shielding in line with public health guidance. Can I place them on Furlough Leave?

Yes, you can also place an employee who has returned from sick leave or self-isolating on Furlough Leave too.

Call our dedicated Employment Helpline 0161 694 4155 for help and guidance.