Your newest employees may now be eligible for furlough, after the deadline was extended to 19 March 2020…
If you have new employees who were not initially eligible under the Coronavirus Job Retention Scheme (CJRS), now’s the time to take another look, as the rules have just been revised. The eligibility date for furlough has now been extended to 19 March 2020, which means tens of thousands of people who thought they had missed out will now be eligible.
The furlough scheme is designed to help companies struggling to survive the COVID-19 pandemic. If you furlough staff, they remain employed by you but mustn’t actually work. The government will repay employers 80% of an employee’s salary (up to £2,500 a month) and it is up to the employer if they top up the pay to 100%.
However, it is not enough for a member of staff to have been employed by your company by that date. In order for your employee to be eligible you must have made a payroll notification to HMRC on or before 19 March.
If any staff were employed on 28 February, but were made redundant before 19 March, they can also qualify for the scheme if you choose to re-employ them and then put them on furlough. It is expected that a quarter of UK workers – that’s more than 9 million people – will be furloughed during the COVID-19 crisis.
According to a survey published by the British Chamber of Commerce, (BCC Coronavirus Business Impact Tracker dated 15 April 2020) two-thirds of British companies have used the scheme, and a third of companies have 75% of their staff on furlough.
Do’s and don’ts of furloughing
Here is a quick reminder of the things to consider if you are furloughing staff:
- You must instruct your employee in writing that they are to cease all work in order to be eligible under the scheme.
- We asked Embrace HR’s employment law solicitor IBB about the rules for rotating furloughed employees. They told us that it is allowed ‘provided that the employees are furloughed for a minimum of three weeks at a time’.
- Anyone working in a full time, PAYE job – even if on a zero hours contract – is eligible.
- The grants to businesses are due to be paid out some time in April and will be backdated to 1 March.
- If staff are self-isolating, they must receive Statutory Sick Pay. They can then be furloughed when they return to work. However, those who are shielding due to health conditions can be furloughed.
- If you have staff who earn variable pay due to zero hours or flexible working contracts, the 80% will be calculated one of three ways: using figures from the same month in 2019, average monthly earnings for the 2019/2020 tax year, or an average of monthly salary since they started work. The highest figure will be used.
You might like to read our other blogs on the matter of Coronavirus:
- Coronavirus FAQs and Statutory Pay Increases
- Furloughed Workers Accrue Annual Leave
- Who is a Key Worker?
- HR Help in Unprecedented Times
- A Guide to Coronavirus for Employees
Please contact us for more advice on the furlough scheme. To help businesses during the pandemic, we are pleased to be able to provide, free of charge, a template document for notifying your staff about the furlough scheme.
If you would like to request a copy of the free template or to discuss this subject further and find out how we could help you comply with new laws, please contact Cecily Lalloo at Embrace HR Limited.
T: 07767 308717 or contact us here.
Based in Aylesbury, Buckinghamshire, Embrace HR Limited supports business owners who do not have their own HR department or those that do but need help from time to time. We also work across the Home Counties of Oxfordshire, Bedfordshire and Hertfordshire, and also SMEs based in London.