If you cannot keep your workforce because your operations have been affected by the coronavirus (COVID-19), you can furlough employees and apply for a grant to cover some of your usual monthly salary costs by registering them as being on furlough.
Coronavirus Job Retention Scheme grants are not classified as state aid.
Who can claim
You must have:
- created and started with a PAYE payroll scheme on or before 30 October 2020;
- created and started a PAYE payroll scheme on or before 2 March for periods beginning on or after 1 May 2021;
- enrolled for PAYE online;
- a bank account in the UK, Isle of Man, or Channel Island.
Any entity with payroll in the UK can apply, including companies, charities, recruitment agencies, and public authorities.
Agreeing to Furlough Employees
Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers make decisions regarding the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.
To be eligible for the grant, employers must confirm in writing to their employees (or have reached a collective agreement with a trade union) that they have been furloughed.
You must:
- ensure that the agreement is compatible with employment, equality, and discrimination laws;
- keep a written record of the agreement for five years;
- keep a record of how many hours your employees work and the number of hours that they are furloughed (for example, not working).
The employee does not have to respond in writing and you do not need to place all your employees on furlough.
You can:
- fully furlough employees - they cannot do any work for you while furloughed full time;
- flexibly furlough employees - they can follow any schedule and work pattern, but they cannot do work for you during the hours you set them up as leave.
When Your Employees are on Furlough
During the hours that you record that your employee is being on furlough, you cannot ask him/her to do work for you that:
- generates money for your organisation or an organisation associated or affiliated with your organisation;
- provides services for your organisation or any organisation linked or associated with your organisation.
Your employee can:
- participate in training;
- volunteer for another employer or organisation;
- work for another employer (if contractually permitted).
If you need help with furlough - do not hesitate to contact Persona Finance! enquiries@personafinance.co.uk
