Q&A: Coronavirus Job Retention Scheme and furlough

The financial job grants offered under the Coronavirus Job Retention Scheme pays up to 80% of salary for temporarily laid off workers, but there are important legal and contractual issues to consider. Croner-i's Nicola Mullineux explains

The Coronavirus Job Retention Scheme involves employers placing their employees on furlough.

This is a term which is typically used in the US and is not actually part of English law. It essentially means putting employees on temporary leave of absence where they do not work and do not receive pay, but are retained on your books to be brought back in when needed again.

Employers who do this will be able to obtain a grant from the government to cover 80% of furloughed employees’ wages, to a maximum of £2,500 per employee per month.

Which employers can access the scheme?

All employers can access it; there is no restriction on size or type.

How do I get the government grant?

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