Covid-19: zero hours PAYE employees entitled to 80% furlough scheme

Zero hours workers are entitled to be furloughed under the 80% rules set out in the Coronavirus Job Retention Scheme based on an average calculation of monthly earnings, reports Sara White

This means that the 80% furlough rules will take into account the amount the zero hours worker earned in the same month in 2019 or an average of monthly earnings from the last tax year, 2019-20.

Under the 80% furlough rules, known as the Coronavirus Job Retention Scheme (JRS), all UK employers are able to access support to continue paying part of their employees’ salary for employees that would otherwise have been laid off during this crisis, including zero hour contract workers.

Under the scheme, employers can claim a grant covering 80% of the wages for a furloughed employee, subject to a cap of £2,500 a month.

The scheme will be backdated to 1 March 2020 and will be initially open for three months, to be extended if necessary, Chancellor Rishi Sunak confirmed when the scheme was first announced on 20 March at the daily covid-19 briefing.

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