As we are in unprecedented times, there is a lot of speculation over the interpretation of some of the information that we have been given by the Government. Information is continuing to be released regularly but it just doesn’t seem to be moving quick enough for businesses who are having to make quick and difficult decisions. So, I thought I would put together a Q&A of what we do currently know!
Q. What is furlough?
A. On 20th March 2020 the Government announced a Coronavirus Job Retention Scheme (JRS) whereby employers were able to retain their staff that they would have otherwise made redundant due to the Coronavirus pandemic. This scheme allows employers to temporarily send their staff home ‘furlough’ and claim 80% of their wages (up to £2500) and keep them on payroll.
Q. Do I have to furlough my staff?
A. No. It is at the discretion of the employer however the Government have introduced this scheme to reduce the amount of people losing their jobs due to the Coronavirus. An employee cannot request to be furloughed, it has to be the request of the employer and will be dependent on the business’ individual situation.
Q. One of my employees doesn’t want to be furloughed. Do they have a choice?
A. An employer must seek the agreement of the employee before they can be furloughed. However, the alternative is likely to be much less desirable for the employee so it would be wise to have a proper discussion with your employee about what the options are.
Q. Which of my employees are eligible to be furloughed?
A. Your employee needs to have been on the business’ payroll as of 28th February 2020. In order for you to be able to furlough them, there must be no work for them to carry out.
Q. One of my employees are self-isolating due to having symptoms of Coronavirus, can I furlough them?
A. No. You will need to seek out whether they are eligible for SSP. The Job Retention Scheme is not intended for short term purposes. In order to ‘furlough’ someone, there is a 3 week minimum period.
Q. One of my employees has told me they have received a letter from the Government telling them they should be shielding for 12 weeks due to being vulnerable. Are they eligible for JRS?
A. Yes. Providing that they meet the eligibility criteria, an employer can decide to furlough employees who are shielding; however, this is left up to them to make the decision. This also applies if they need to stay at home with someone who is shielding.
Q. A few of my employees now have to look after their children due to the schools/nurseries being closed and they have said they don’t have the time to do their normal working hours. Can I furlough these employees?
A. It would be worth speaking with your employees and having a discussion around the flexibility of the job. Are you able to introduce a 7 day working week so that they are able to have more days to spread their hours over? Could they start earlier or finish later around their caring responsibilities? Do they have a partner that they are able to share caring responsibilities with? If the answer to all of these questions are no, then you can furlough your employee but again this will be down to your discretion.
Q. Can my employees still carry out odd tasks for me whilst they are furloughed?
A. No. Furloughed employees must not carry out any work for their employer. Work is defined as providing a service or generating revenue for or on behalf of the organisation. They can undertake training related to work but be aware that if their furloughed pay takes them under minimum wage, it will need to be topped up to at least National Minimum Wage for the hours they are training.
Q. How long can I furlough my staff for?
A. Currently the government have said that the Job Retention Scheme will run up until the end of May 2020 however this will then be due for review. The minimum amount of time an employee can be furloughed for is 3 weeks.
Q. Should I be topping up my employees’ salaries to 100% whilst they are furloughed?
A. You may choose to top your employees’ salary to 100% but this will depend on the situation of the business and is not something that you are obliged to do. If you are not topping up your employees’ salary, you should state this in your letter to them and your employee is entitled to ask you for your reason behind your decision.
If you have any other burning questions regarding the Job Retention Scheme, please do let me know so that I can create another Q&A blog to help as many people as possible during this difficult time.
Stay safe and stay home.
Emily
VIVA Support
Your Helping Hand