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Furlough... What & How

This is a strange and unprecedented time. There are new developments daily, even every hour and it can be hard to keep ahead or think straight.


Especially where your business is losing customers, closes or the work is no longer available for your team to perform.


Thankfully this does not mean an inevitable redundancy is on the cards as the Government introduces new measures to support businesses and their employees through their job retention scheme.


So you can retain your most valuable asset. Your people. Until work resumes as normal.


How? Furlough.


What does that mean?

Where employees are paid through PAYE and their usual work is temporarily unavailable during this time, the government will pay up to 80% of an employees wages. With a maximum monthly payment limit of £2,500.


Employers can choose to pay the additional 20% of their employee salaries, but do not have to do so.


It may not meet an employees usual salary payment but will provide a safety net for many and security in knowing that there is a job to return. It also helps businesses to retain talent, knowledge and skills whilst also supporting their team.


The employer is responsible for informing their teams of any need to initiate furlough and informing HMRC through an online portal to start the process.


To ensure your employees qualify for the scheme, they must not conduct any work for their employer whilst furloughed.


The 80% salary calculation will be based on an employees earnings in February 2020. Zero hour workers may also be furloughed where they are usually paid through PAYE.


Payments under this scheme can be backdated to 1 March 2020 and are currently set to continue for 3 months. However, this may be extended by the government if necessary.


For further advice on implementing furlough in your company or communicating and supporting your team, get in touch by email or telephone. Or use our booking service to book your free call now.




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