Due to the Coronavirus crisis, the government has introduced the Coronavirus Job Retention Scheme. This is one of a number of measures brought in by the government to support businesses and save jobs.
What is furlough?
Furlough leave is when your employer offers you a temporary leave of absence as an alternative to dismissing you by making you redundant.
What does it mean if you are put on furlough leave?
You will have 80% of your wage paid by the government, up to a cap of £2,500 per month. This can be topped up by your employer so you receive full pay but this is not obligatory. From July 2021, employers have to contribute 10% of your furlough pay. This figure will rise to 20% for August and September 2021.
Furlough pay can include overtime fees and can come out of compulsory commission payments but does not apply to discretionary bonuses.
You can cease all work or work part time with the grant covering unworked hours.
How do you qualify for furlough leave?
Furlough leave can apply to both full-time and part-time employees, as well as agency employees, zero-hour contract workers (provided they are employees) and apprentices.
Your employer will need to consult with you and you have to agree to be furloughed.
Your employer has to confirm that you are being placed on furlough leave in writing, although this can be through an exchange of emails.
You will be on furlough leave for a minimum period of seven days.
How long can you be furloughed until?
The furlough scheme is set to run until 30 September 2021.
For expert advice on the Coronavirus Job Retention Scheme, furlough leave and flexible furlough leave, contact our Employment Law Team on 01273 609911, or email email@example.com.