The COVID-19 Job Retention Scheme

If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay.

The employer can choose to top up, but is not obliged – all the usual deductions (e.g. NICS etc) apply.

Full details on and the claims portal is set up on the Government Website Here

COVID -19 Letter putting employee onto furloughed scheme

What is Furloughing?

In UK employment law, the term ‘furloughed’ has previously had no legal significance. The strict meaning of the word is a temporary leave of absence from work, it is in effect an enhanced lay-off process. All contractual benefits (e.g. holidays) continue to accrue.

How do I go about unfurloughing staff?

In due course, all businesses will be looking to bring their furloughed workers back to work, or to consider other options, once the COVID-19 Job Retention Scheme (CJRS) comes to an end.

The CJRS, originally scheduled to finish at the end of June, has been extended until the end of October 2020 to run in four stages:

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.
August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions.
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.
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.

A guide to unfurloughing has been prepared for FIS Members by the CICV Forum in Scotland

The Government has issued revised guidance whch clarifies the position about the ability to claim the scheme’s grants for wage costs during notice periods.

Remember – the Furlough scheme closes to new entrants on the 10th June (this does not prevent refurloughing, but does mean people can no longer be furloughed for the first time)

Will employees be classed as “homeworkers” during this period and will home become their usual place of work?

No. Homeworking due to coronavirus will be a temporary measure and your employees contractual normal place of work will remain at its usual address. We would advise you communicate this to your employee to confirm this is on a temporary basis and because of the current risks raised by the coronavirus, you have agreed with them that they will work from home.

We suggest you advise the situation is temporary homeworking and that you can end the homeworking at your discretion. If homeworking arrangements had been put in place due to medical advice to self-isolate, then if they came to an end, the employee will have to go on sick leave for the remainder of the isolation period. If the homeworking was precautionary, the employee would simply return to their normal place of work.

However, as the coronavirus situation is so unusual, temporary homeworking should not establish any kind of precedent that the employee now works from home.

Do I have to consult with an employee before making them a furloughed worker?

Employers should discuss with their staff and make any changes to the employment contract by agreement. When employers are making decisions in relation to the process, including deciding who to offer furlough to, equality and discrimination laws will apply in the usual way.

To be eligible for the grant employers must confirm in writing to their employee confirming that they have been furloughed. If this is done in a way that is consistent with employment law, that consent is valid for the purposes of claiming through the scheme. Collective agreement reached between an employer and a trade union is also acceptable for the purpose of such a claim. There needs to be a written record, but the employee does not have to provide a written response. A record of this communication must be kept for five years.

You do not need to place all your employees on furlough. However, those employees who you do place on furlough cannot undertake work for you

Is there a minimum period for Furlough?

Any employees you place on furlough must be furloughed for a minimum of 3 consecutive weeks. When they return to work, they must be taken off furlough. Employees can be furloughed multiple times, but each separate instance must be for a minimum of 3 consecutive weeks. Each period of furlough can be extended by any amount of time whilst the employee is on furlough. However the scheme end date is the last day you can claim for through this scheme.

How do I go about unfurloughing and returning staff to the workplace

Excellent guidance from the CIPD help you plan your organisation’s next steps following a period of furlough or once lockdown measures start easing is available here.

Is it possible to Furlough someone Part Time?

The Government has updated its guidance on the Coronavirus Job Retention Scheme, which confirms how the scheme will change from 1 July 2020 to provide for ‘flexible furloughing’:

Employers can only furlough an employee who has previously been furloughed prior to 30 June. The exception is employees returning from statutory maternity and paternity leave, provided that their employer has previously furloughed other employees
Employers can bring furloughed employees back to work for any amount of time and on any work pattern while still claiming grant for the hours not worked. Flexible furlough agreements must be for a minimum of one week, and employees can enter into a flexible furlough agreement more than once
Employers must confirm in writing with employees and keep records of how many hours employees work and the number of hours they are furloughed
If an employee is flexible furloughed over two different calendar months, a separate claim must be submitted for each month
From 1 August, employers will have to contribute towards the cost of furloughed employees’ wages.

When making a claim, employers will need to provide the number of hours an employee would have usually worked as well as the number of hours they actually worked, and the Coronavirus Job Retention Scheme calculator has been updated to assist in working out claim amounts for flexible furloughing.

The first time you will be able to make claims for days in July will be 1 July, you cannot claim for periods in July before this point.

Frequently Asked Furlough questions

What is ‘work’ and what do you do if you can’t afford furlough payments?

How do you treat the Bank Holidays and annual leave for furloughed employees?

A more detailed Q&A provided by FIS Employment Support partner Citation available here.

Template Letter

COVID -19 Letter putting employee onto furloughed scheme

This resource on the CBI website is also useful. As is Coronavirus Employment Schemes – Construction Leadership Council advice.

The online system for making claims under the Coronavirus Job Retention Scheme has been developed was launched on 20 April.