IF YOU ARE FURLOUGHED UNDER THE EXTENDED CORONAVIRUS JOB RETENTION SCHEME, YOU SHOULD BE PAID 80% of YOUR WAGES FOR HOURS NOT WORKED
IF YOU HAVE HAD YOUR HOURS CUT TO ZERO WITHOUT BEING FURLOUGHED, OR YOU HAVE BEEN MADE REDUNDANT, PLEASE LET US KNOW SO WE CAN HELP YOU CAMPAIGN FOR WHAT'S RIGHT.
Following the Chancellor of the Exchequer's Budget on 3 March 2021, the Coronavirus Job Retention Scheme (CJRS) has been extended to provide financial support to any UK employer to continue to pay 80% of staff's wages for hours not worked rather than laying them off or making them redundant. The scheme is now due to close on 30 September.
You are furloughed if your employer tells you that you are being kept on the payroll but will not be undertaking work for them. This is a requirement for an employer to receive support from the Coronavirus Job Retention Scheme. If you are furloughed by one employer, you are not prevented from working for someone else.
If you are furloughed, your employer cannot claim National Insurance and pension contributions, but they still need to make these payments. In addition, from July, the amount that employers will be able to claim is reduced as follows:
You are furloughed if your employer tells you that you are being kept on the payroll but will not be undertaking work for them. This is a requirement for an employer to receive support from the Coronavirus Job Retention Scheme. If you are furloughed by one employer, you are not prevented from working for someone else.
If you are furloughed, your employer cannot claim National Insurance and pension contributions, but they still need to make these payments. In addition, from July, the amount that employers will be able to claim is reduced as follows:
Month |
Amount payable to employer/worker |
Amount that can be claimed by employer from CJRS |
Amount to be contributed by employer |
April |
80% |
80% |
0% |
May |
80% |
80% |
0% |
June |
80% |
80% |
0% |
July |
80% |
70% |
10% |
August |
80% |
60% |
20% |
September |
80% |
60% |
20% |
WHO CAN CLAIM UNDER THE CJRS?
Any employer can make use of the scheme, whether or not they have used it before and whether or not their business is open or closed. The government does not expect public sector employers to make use of the scheme, but as with the original scheme, there is no specific prohibition to do so. We are aware of public sector organisations, including local authorities and NHS Trusts, that have furloughed staff under the scheme.
WHO CAN BE FURLOUGHED?
Anyone who who was on an employer's payroll - whether employee or casual worker - on 30 October 2020 can be furloughed or partially or flexibly furloughed under the CJRS. They do not have to have been furloughed previously. If you are flexibly furloughed, your employer pays your wages as usual for the time you work and you should receive 80% of the your wages for the time not worked. Your employer should pay their national insurance and pension contributions as normal, but they cannot claim this back through the scheme.
If an employee was on an employer's payroll on 23 September but since made redundant or stopped working, they can be re-employed and furloughed. This includes where an employee was on a fixed term contract, which came to an end after 23 September.
Employees can also be furloughed if they cannot work because either they are shielding in line with public health guidance, need to stay at home because someone is shielding and have caring responsibilities as a result of Covid-19.
If an employee was on an employer's payroll on 23 September but since made redundant or stopped working, they can be re-employed and furloughed. This includes where an employee was on a fixed term contract, which came to an end after 23 September.
Employees can also be furloughed if they cannot work because either they are shielding in line with public health guidance, need to stay at home because someone is shielding and have caring responsibilities as a result of Covid-19.
HOW WILL MY FURLOUGH PAY BE CALCULATED?
If you were previously furloughed, then your furlough pay will be continue to be calculated as before. This means that your employer can claim the highest of either 80% of:
If you have not been furloughed previously, your employer can claim 80% of the average payable between the start of your employment or 6 April 2020 (whichever is later) and the day before you were furloughed under the extended CJRS.
- your earnings for the same month in the previous year; or
- your average monthly earnings for the 2019-2020 tax year; or
- your average monthly earnings since you started work, if you were employed for less than 12 months.
If you have not been furloughed previously, your employer can claim 80% of the average payable between the start of your employment or 6 April 2020 (whichever is later) and the day before you were furloughed under the extended CJRS.
CAN I WORK IF I AM FURLOUGHED?
If you are furloughed by your employer, you cannot do any work during the hours you are recorded as being furloughed for your employer that makes money or provides services for them or for any organisation linked or associated with them. However, you can undertake training that is required by your employer.
You can volunteer or work for another employer, in accordance with your contract.
You can volunteer or work for another employer, in accordance with your contract.
iF YOUR EMPLOYER HAS REFUSED TO FURLOUGH YOU, YOU CAN DOWNLOAD THIS FACTSHEET TO HAND TO THEM |
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YOU CAN ALSO DOWNLOAD THIS FACTSHEET FOR MORE INFORMATION ABOUT YOUR ENTITLEMENT TO FURLOUGH |
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WHAT IF I WAS NOT FURLOUGHED?One thing we have seen is that many people on zero hours contracts have not been furloughed at all. Instead, they simply saw their work disappear, agreed shifts cancelled and they were left with no pay.
Unfortunately, there is no legal right to be furloughed. It is completely up to the employer whether and how many employees are furloughed and for how many hours. Often, with zero hours contracts and casual work, employers may not be contractually obliged to pay when no work was done, so there is no legal incentive to furlough. If you found yourself in this situation, please contact us and we can try to plead your case with your employer. If you believe that you were not furloughed because of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation, then you may have a claim for discrimination. (Please note: you cannot be furloughed under the CJRS if you receiving sick pay or are on maternity or paternity leave.) "Being on zero hours contract" is not in itself a protected characteristic. |
CAN I BE LAID OFF INSTEAD OF FURLOUGHED?As many employers have had to close during the lockdown, it is expected that many may be forced to make staff redundant. Those on zero hours contracts may not see much work offered.
If your employer had decided to furlough you under the Coronavirus Job Retention Scheme, you should hopefully be protected from being dismissed or made redundant while furloughed, as the purpose of the scheme is to help them pay staff in the absence of sales or revenue. However, employers were not prevented from making furloughed staff redundant. If you are being taken of furlough to be made redundant, then any redundancy pay and notice pay should be based on your pre-furlough pay. If you are on a zero hours contract, you may be completely unfurloughed but not offered any work, without being made redundant. If you find that you are not offered work for some time, you may be able to request to be made redundant. |
