Furlough Agreement Gov

Furlough Agreement Gov

Bez kategorii -

Furlough Agreement with the Government: What You Need to Know

The COVID-19 pandemic has brought unprecedented changes to the job market, with many businesses struggling to stay afloat. In response, the UK government introduced the Coronavirus Job Retention Scheme, commonly known as the furlough scheme, to support businesses and employees alike.

Under the furlough scheme, employers can place employees on a temporary leave of absence, or furlough, and claim a grant from the government to cover 80% of their wages, up to a maximum of £2,500 per month. This scheme has been extended multiple times and currently runs until 30 September 2021.

To furlough an employee, employers need to have a written agreement in place. This agreement must be in line with employment law and must be agreed upon by both parties. The agreement should outline the following:

– The period of furlough

– The employee’s rights and responsibilities during furlough

– The employer’s obligations during furlough

– How much the employee will be paid during furlough

– How the employee will be notified when furlough ends

Employers must keep the agreement for five years and make it available for inspection by HMRC if required. Failure to have a written agreement in place could result in financial penalties.

Employers must also ensure that employees are not asked to undertake any work during furlough. This includes checking work emails, answering phone calls, or participating in virtual meetings. Employees can undertake training during furlough, as long as they are not providing services to the employer.

Furloughed employees retain their employment rights, including holiday entitlement and sick pay. However, their rights can be affected if they take on additional employment while on furlough. Employees need to check their employment contracts and seek legal advice if they plan to take on additional work.

In summary, furlough is a temporary measure aimed at supporting businesses and employees during the pandemic. Employers must have a written agreement in place that outlines the period of furlough, the employee’s rights and responsibilities, the employer’s obligations, and the employee’s pay. Employees must not undertake any work for the employer during furlough, and their employment rights remain intact. If you have any questions or concerns about furlough, seek legal advice or speak to your employer.