The Coronavirus Job Retention Scheme involves employers placing their employees on furlough. This is a term which is typically used in the US and is not actually part of English law. It essentially means putting employees on temporary leave of absence where they do not work and do not receive pay, but are retained on your books to be brought back in when needed again. Employers who do this will be able to obtain a grant from the government to cover 80% of furloughed employees’ wages, to a maximum of ￡2,500 per employee per month. All employers can access it; there is no restriction on size or type. Guidance states that you will need to designate which of your workforce will be furloughed employees and then submit that information to HMRC, along with each employee’s earnings. You will then receive a grant to cover the 80% wages. The grant will be liable for income tax and employee national insurance contributions (NICs). More information is awaited from the government on the online portal to be used to submit the information and what other information may be needed.
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