The Government’s furlough proposals are aimed at helping businesses to survive the COVID-19 crisis.  The proposals are still in outline form.

• The proposals are aimed at employees who would otherwise be laid off
• Employers can designate affected employees as ‘furloughed workers”
• But only if they have the right to do so by way of a lay off clause in the employment contract or by agreement with the employee
• HMRC will reimburse 80% of furloughed workers’ wage costs, up to a cap of £2,500 per month
• Employees cannot carry out any work whilst furloughed

Further guidance can be found by following these links.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-the-coronavirus-job-retention-scheme

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees#furloughed-workers

If you would like more advice on any of the issues raised above or in our Coronavirus FAQs (read here), please do not hesitate to get in touch with us.