The government has published further details of the Coronavirus Job Retention Scheme (Furlough Leave).

The key points of the Coronavirus Job Retention Scheme (Furlough Leave) are as follows:

  • the Coronavirus Job RetentionScheme is open to all UK employers that had a PAYE scheme in place on 28th February 2020
  • to be eligible, the employee must have been on the payroll on 28th February 2020.  If they were hired later, they are not eligible. 
  • Anybody who was on the payroll on 28th February and has since been made redundant can be rehired and placed on the Coronavirus Job Retention Scheme. Claims can be backdated to 1st March 2020.
  • employers can reclaim up to 80% of wage costs up to a cap of £2,500 per month, plus the associated employer NICs and minimum auto-enrolment pension contributions on that wage. Fees, commissions and bonuses are not included.
  • employers can choose to top up to 100%, but does not have to
  • furlough leave must be taken in minimum blocks of three weeks
  • furlough leave may be rotated amongst employees, provided each employee is off for a period of at least three weeks
  • employees on the Coronavirus Job Retention Scheme (furlough leave) must not work.  However, they are able to undertake training and do volunteer work.  Furloughed employees must not provide services to or generate any revenue for their employer.
  • employees on maternity leave can continue to draw SMP payments.  The guidance does not prohibit women on maternity leave agreeing to return to work early and then being furloughed.
  • employees on sick pay or self-isolating cannot be furloughed but can be furloughed afterwards.  Employees who are shielding can be placed on furlough.

The government expects the Coronavirus Job Retention Scheme to be up and running by the end of April.

Full guidance: Read full guidance

If you would like to discuss this topic in more detail or would like more information, contact Ramshaw HR today.

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