When will furlough payments be made?
MILLIONS of workers in the UK have been furloughed following the coronavirus crisis - here's what you need to know about when payments are made.
The government's coronavirus job retention scheme covers 80 per cent of the wages of furloughed staff, up to a maximum of £2,500 per month.
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The scheme is due end in October, although the government will start weaning off its support from August.
From today, employees can also start going back to work part-time, and their boss can still claim furlough pay for the days they aren't working.
What is the government furlough scheme?
Simply put, if your employer is forced to close temporarily due to coronavirus, your boss can ask the government to pay 80 per cent of the wages of furloughed staff.
Claims are, however, capped at £2,500 per month for each employee, so if you usually earn a lot more than that you'll see a bigger drop in wages.
The scheme had originally been due to finish in July, but Chancellor Rishi Sunak has now extended the government help until October 2020.
However, employers will be asked to contribute towards the pay of furloughed workers from August.
Can I be made redundant if I'm on furlough?
EVEN though furlough is designed to keep workers employed, unfortunately it doesn't protect you from being made redundant.
But it doesn't affect your redundancy pay rights if you are let go from your job amid the coronavirus crisis.
Your employer should still carry out a fair redundancy process.
You will be entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
If you're made redundant after your company has gone into administration you can claim redundancy pay .
Furloughed workers will still receive 80 per cent of their usual wages - the only difference will be who is paying it.
From August, businesses must start paying National Insurance and pension contributions of furloughed staff.
Currently, the government's furlough scheme covers the cost of these expenses.
Then in September, bosses will have to pay 10 per cent of salaries, plus National Insurance and pension contributions, of furloughed staff, with the government forking out the extra 70 per cent.
In October, businesses will pay 20 per cent of salaries, plus National Insurance and pension contributions, while the government contributes 60 per cent.
When will furlough payments be made?
You should still get paid on the same day of the month as you always have done, as stated in the terms of your contract.
The only exception is if you've agreed in advance with your employer to accept a deferred payment.
You should check with your boss if you're unsure.
Which employees can get furlough pay?
To be eligible for the scheme from July 1 onwards, workers must have been furloughed for at least three consecutive weeks between May 1 and June 30.
They must also have already been enrolled on the scheme before June 10, which is when the chancellor closed it to all new applicants.
Previously, workers had to be employed on or before March 19 - the day before the scheme was announced.
As over the last three months, your employer can choose to top-up your payments so that you get paid your full monthly wage, although they do not have to.
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Apprentices can be furloughed in the same way as other employees and can continue to train while furloughed.
But businesses must pay apprentices at least the Apprenticeship Minimum Wage, National Living Wage or National Minimum Wage for all the time you spend training.
This means bosses must cover any shortfall between the 80 per cent that the scheme will pay and the minimum wage.
Who can use the government furlough scheme?
Any UK organisation with employees can apply, including businesses, charities, recruitment agencies and public authorities.
What do I need before I can be considered for a claim?
You must have:
- created and started a
- a UK bank account
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities.
Can I receive furlough pay if I am on sick leave?
If you become sick while on furlough you can still be paid Statutory Sick Pay.
But in this scenario employers can no longer claim for the furloughed salary.
So it is up to employers to decide whether to move these employees on to Statutory Sick Pay or to keep them on furlough, at their furloughed rate.
Can I take holiday leave while on furlough?
The updated guidance on furlough, which was produced on April 17, revealed that your holiday amount continues to accrue during furlough.
Employees can also take holiday leave during while on furlough and this would be paid at your normal rate of pay, meaning employers would have to top up the scheme payments.
The Working Time Regulations 1998 has been amended though for coronavirus, with only four weeks' statutory leave allowed to be carried over for the next two years, rather than the full 5.6 weeks.
But holiday leave remains under review throughout the furlough period.
Can I be furloughed if I am on maternity leave?
Employees on the government-mandated 39 weeks of Statutory Maternity Pay (SMP) will still have to be paid by their employer.
This covers six weeks paid at 90 per cent of weekly earnings, followed by £151.20 or 90 per cent of your average weekly earnings (whichever is lower) for the next 33 weeks.
Anything your company pays you on top of this amount can be covered by the government furlough scheme up to £2,500 per month.