How to Furlough Employees and the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) has been set up by the government to support UK employers who have been severely affected by coronavirus (COVID-19). It is a temporary wage support measure that is designed to support jobs and help employers facing difficulties in paying wages rather than laying off staff or making them redundant. 

The final date by which an employer can furlough an employee for the first time will be 10th June 2020, in order for the current three-week furlough period to be completed by 30th June 2020.

The CJRS has been extended to October 2020 with the Scheme continuing in its current form until 30th June 2020. From July to October 2020 the Scheme will be changed so that furloughed employees can be brought back part-time and the amount that HMRC will reimburse will fall in August, September and October 2020. 

In order to be eligible for CJRS, employers must have created and started a PAYE payroll scheme on or before 19 March 2020 (N.B. the date was previously 28 February 2020) and have a UK bank account.

Full details can be found here: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme .

Part of the qualification process will require the employer to designate affected employees as ‘furloughed workers’, and to notify employees of this change. The following documents are available in the Employment Document folder:

A Coronavirus Job Retention Scheme Furlough Leave Letter can be used to explain an employer’s plan to furlough staff.

A Coronavirus Job Retention Scheme Furlough Leave Agreement can then be used to seek employees’ agreement to the Company placing them on furlough leave.

As the information in this area is developing all the time, we would recommend that you regularly review this information, the documents available in the Employment Folder and the updated documents section on Your Account page to ensure that you are using the latest versions.

• Extension of the Coronavirus Job Retention Scheme and Flexible Furloughing
• What does it mean if an employee is 'furloughed'
• What can employees do while on furlough?
• How long does furlough leave last and what happens at the end?
• Can employees furlough themselves and what about casual and zero-hours contracts?
• Can you rotate furlough leave, what about employees on sick leave and apprentices and the NMW?
• How do employers access the CJRS scheme?
• Coronavirus Job Retention Scheme Portal Opens 20 April
• Temporary Changes to right to work checks
• Holiday Related Questions (Furlough)
• New ACAS Guidance on Disciplinary and Grievance Procedures during Coronavirus
• Coronavirus Statutory Sick Pay Rebate Scheme set to launch
• Entitlement to Statutory Sick Pay has been extended to Test and Trace
• Parents returning to work after extended leave eligible for furlough