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Furlough Leave – what do we know and how does it apply?

Furlough Leave – what do we know and how does it apply?

The Government has announced remarkable measures in response to the current crisis.  For employers, an important one is the Coronavirus Job Retention Scheme.  This will be a life line for many companies.

The information that is currently available is limited, and no doubt finer details will be provided, however this is what we know so far about the scheme:

  • All companies are eligible, it isn’t restricted by size or sector;
  • Employees can be placed on ‘furlough leave’ rather than be dismissed due to a lack of work;
  • The government will refund employers 80% of wages up to a maximum of £2,500 per month;
  • The employee must have been on the payroll on 1 March 2020;
  • Payments will be available from the end of April and backdated to 1 March.

However, it is important to remember that all employment laws still apply.  It’s unlikely that this will be covered in an employment contract, and so it is important that there is agreement with the employee.  In all likelihood, it’s difficult to see how any employee will not agree to this given the current situation.

If you need any further guidance, please contact us to find out how we can help.

Posted on: 23/Mar/2020 Posted in: Employment Law
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