June 2020

Furloughed workers: what does that mean? In case you are still unsure of what is means for UK employers and staff, it is worth looking at the rules around the furlough. Businesses have to ‘designate affected employees as furloughed workers and notify your employees of this change’. However, employers still have to heed employment law which means that, having designated those employees whose jobs were at risk, they will need to agree with those P utting staff on furlough is a new concept in the UK, and is one of the most novel measures introduced as a result of Coronavirus. The Coronavirus Job Retention Scheme is designed to help businesses that would otherwise be forced to lay off staff in the face of the unprecedented disruption caused by COVID-19 All businesses with a PAYE scheme in place on 28 February 2020, regardless of size or sector, will be 24 AFTERMARKET JUNE 2020 BUSINESS www.aftermarketonline.net FURLOUGHED WORKERS AND WHAT IT MEANS FOR BUSINESS Getting the details right is vital for businesses looking to furlough staff under the Coronavirus Job Retention Scheme able to benefit from the Coronavirus Job Retention Scheme with the government reimbursing employers up to 80% of their employees’ wages, to a maximum of £2,500 per month, plus employer’s NICs and auto- enrolment pension contributions. Employees on agency contracts and flexible or zero hours contracts can also benefit from the scheme. In addition, the scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer. BY Tina Chander, Partner at Wright Hassall