Step by step guide to furloughing employees

  • Decide what staff you want to furlough
  • Both employees and their employer must agree before an individual can be put ‘on furlough’ (we can provide a draft letter)
  • You can choose to furlough some but not other employees
  • You can make employees redundant while they are ‘on furlough’ or immediately after. If an employee is made redundant while on furlough, their redundancy rights are not affected.
  • you can claim for the grant for a minimum three-week period and for up to three months, although the government may decide to extend this.
  • Employees placed on furlough cannot undertake work – i.e. provide services or generate revenue for or on behalf of their employer.

How is sick page calculated?

For full time employees, it is based on the actual salary before tax as of 28 February 2020.

For employees whose pay varies, the employer can claim for the higher of either:
the same month’s earnings from the previous year
average monthly earnings for the year

If the employee is employed for less than a year, claim for an average of their monthly earnings since they started working. If the employee only started in February 2020, use a pro-rata for their earnings so far to claim

Fees, commission and bonuses should not be included.

You need to pay at least 80% of the salary but may top it up if required

You must not reduce the salary below that of February 2020.

The grant is taxable and should be included in your income when doing your accounts

The maximum salary is £2,500

If we do your payroll we will advise as to what you need to do to claim the grant automatically, once it is ope

If you do your own payroll then please ask us as to what the process is once the portal is opened – we will be only too pleased to help.

Martin Lewis on Twitter