Employer information relating to furloughed staff

By Randall Payne

RPayne

 

If you are an employer with the need to furlough staff, here is some additional information after reading up on the Government support which is currently available.

There are three key things regarding the need to furlough staff to be aware of:

  1. Staff who are furloughed must not do any work for the employer in order for their wages to qualify for the grant.
  2. It is being suggested that no grant will be paid out before the end of April at the earliest, so businesses will need around three months cash flow to allow for this, even where they do qualify for the grant.
  3. Furlough is meant to be an alternative to redundancy as given the approach to short term working (which does not qualify) it seems unlikely that employers can pick and choose some weeks where an employee is furloughed and some weeks where they work. It seems likely that once the employee is reengaged to work, for however short a period, the grant cannot then be claimed.

This is based on our current understanding and may change as more information is made available by HMG and HMRC.

If you have any questions please get in contact on 01242 776000 or via our contact form.

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