10 Facts About Furlough Leave
The Government’s Coronavirus Job Retention Scheme (CJRS) has been extended to the end of September 2021. However, from 1st July 2021, employers can only reclaim up to 70% of wages for hours not worked (up to the cap of £2,187.50 a month). Nevertheless, the employer must continue to pay at least 80% of the employee’s wages (up to the cap of £2,500 a month) for any furloughed hours. Therefore, from the start of next month employers will have to contribute 10% (up to the cap of £312.50 a month). It is optional whether an employer chooses to top up an employees’ wages above the 80%, but this cannot be reclaimed.
Did you know …
- There is no minimum period of furlough leave.
- Employees, directors and workers can be included in the Scheme.
- Decisions made by an employer as to who should be furloughed can amount to unlawful discrimination if the selection is based on any “protected characteristic” under the Equality Act 2010 (e.g. age, sex, race, religion, disability).
- Any reduction in pay whilst on furlough must be agreed with the employee, otherwise it amounts to a breach of contract.
- Holiday entitlement will continue to accrue for an employee during furlough leave.
- An employer can force an employee to use holiday entitlement whilst on furlough leave.
- Employers can carry out a redundancy consultation with employees whilst they are on furlough leave.
- Employees can be made redundant whilst on furlough leave, or at the end of furlough leave.
- If an employee receives a payment in lieu of their notice entitlement upon termination of their employment the CJRS cannot be used to help pay this.
- For the purpose of calculating an employee’s entitlement to various statutory payments, including redundancy pay, this must be with reference to their normal pay, not the pay received whilst on furlough leave.
For more detailed advice, whether you are an employee, worker or employer please consult with our employment specialist – Jennifer Carpenter, solicitor and managing partner.
