On Friday 21 March 2020 the Chancellor announced further measures on how the Government can support businesses during the Coronavirus outbreak. They have introduced the Coronavirus Job Retention Scheme which will help businesses cut costs and retain talent.
- Employers are able to access support to claim 80% of employees wage (up to £2,500 per month) back dated to 1 March 2020.
- Employers may choose to pay the remaining 20%, but are not required to (although this “reduction” is still subject to employment law and advice should be sought).
- To qualify, employees are not to undertake work whilst furloughed.
A furloughed employee would mean that they are kept on payroll without being provided with work rather than being laid off.
We appreciate that many of you will have questions, however, there is very little guidance and we expect to hear more from the Government shortly.
Some questions that spring to mind:
- Can companies bring back people they have terminated?
- What happens to those on zero hour contracts?
- What happens to benefits- pension, healthcare etc?
- Are 80% of wages based on actual or contracted hours?
- Can people get a second job if their employment was only part-time?
What questions do you have? Get in touch on 0161 478 3800.