SJC+0 accountants | Putting Employees on Furlough
16935
page,page-id-16935,page-child,parent-pageid-16890,page-template-default,ajax_fade,page_not_loaded,,qode-theme-ver-5.1.1,wpb-js-composer js-comp-ver-4.7.4,vc_responsive
 

Putting Employees on Furlough

 Putting Employees on Furlough

Employers will need to designate affected as furloughed workers, and notify their employees of this change.

 

They must note that changing the status of employees remains to existing employment law and, depending on the employment contract, may be subject to negotiation. This means that in the absence of any contractual rights to contrary, employers would be wise to seek agreement from staff about furloughing before doing so.

 

We recommend all employers seek advice from employment and HR legal specialists before going through this process and my template furlough letter should be used in accordance with applicable employment law and legal guidance. SJC+0 takes no responsibility for the use of the basic template letter provided.

 

We encourage all business owners to read HMRC’s guidance for employers and business owners, which can be found on the gov.uk website.

 

This provides helpful advice on minimising the spread of infection and what to do if one of your staff presents symptoms.

 

Update 2 June 2020

Furlough changes
From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support people back to work.

Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them – and will be responsible for paying their wages while in work.

The scheme updates mean that the following will apply for the period people are furloughed:

  • June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
  • September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
  • October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.

 

 

 

Finally if you need to have a chat with me please contact me. I can do zoom calls, FaceTime or just the normal phone call.
Don’t bury your head in the sand, talk to me, and stay safe.

Subscribe to my newsletter for weekly and breaking news updates related to Coronavirus business support.