The Furlough scheme is set out in two phases; Phase 1 (March- June), Phase 2 (July – October)
To qualify for the Furlough scheme in Phase 1, staff should not undertake work for the employer throughout the time they are furloughed. The employer could choose to fund the differences between the furlough payment and your normal salary, but they have no obligation to do so.
From July 2020 the scheme will enter Phase 2 which allows staff to return to work for part-time hours, whilst claiming their remaining hours as furlough. Throughout the 4 month period of Phase 2 the contribution made by the employer will steadily increase until the Furlough scheme is concluded at the end of October.
Our simple guide on all the changes to the Furlough scheme is an essential for all business owners. Click on the link below to download your copy or share this page with your networks to ensure all employers are up to date with the changes.
The steps an employer should take before applying for the furlough scheme:
- Assess which employees to put on Furlough
Each employer should consider who should be furloughed. These have to be employees who would otherwise have been laid off.
- Decide the company’s approach to topping up pay
You are not obliged to but you may wish to do so if you can afford to. It may help with staff loyalty in the longer term.
- Communicate with the affected staff
As the furlough leave is stated to be subject to existing employment law, it is likely that you need to obtain the agreement of your employees to the change.
- Follow up the discussion in writing
Confirm a record of the conversation and the fact that the employee has agreed.
- Submit information to HMRC to claim the grant
There is an online portal for employers to submit claims for support.
To find out more and to answer many of your questions we have put together an 8-page Factsheet covering registration, eligibility, deductions, refunds and much more. To download your copy just click on the button