- Managing your Furlough Leave Arrangements
Managing your Furlough Leave Arrangements
Managing your Furlough Leave Arrangements31st March 2020 - Published by Employment team
On the 20th March 2020, the government introduced the Coronavirus Job Retention Scheme to support businesses and prevent job losses.
While we welcome the further guidance released by the government last week, some questions remain where expert guidance and lateral thinking will be needed. The basic principle is that the Scheme allows those employees to be placed on furlough leave who would otherwise have their employment terminated for redundancy or be laid off as a result of COVID-19. These employees are termed ‘furloughed workers’.
Furloughed workers are not permitted to carry out any work for their employer during the period of furlough, however they must remain on the payroll. Under the terms of the Scheme, HMRC will reimburse, by way of a grant, 80% of furloughed workers wage costs up to a cap of £2,500 per employee, per month, for a maximum of three months (although the government has said they may extend this period).
We understand that employers are likely to have questions regarding furlough leave, particularly as there is a risk of claims (including discrimination claims) if the process is not handled correctly.
Our employment team are on hand to advise on the details of the Scheme, both currently and as and when further guidance is provided, including in what circumstances employers can apply; implementing the contractual change; the employee selection process; timescales; and the terms of furlough leave.
We can also offer a cost-effective COVID-19 Employer Emergency Support Package to help your business. This would include:
• An advice note (containing FAQs)
• Variation letter template to be sent to employees
• Up to one hour follow-up advice clinic to cover thorny questions, such as whether collective consultation needs to be followed, the position with annual leave, how this affects minimum wage entitlement, what happens after Furlough, whether Furloughed employees can be rotated, and the impact of pregnancy and sickness absence.
For the total price of £700+VAT
For expert advice on managing your workforce during the COVID-19 outbreak, or to ask about the above support package, please contact one of the following advisors:
Kevin McKenna: 0161 838 7851 / email@example.com
Sally Bird: 0161 838 7818 / firstname.lastname@example.org
Mark McKeating: 0161 838 7810 / email@example.com