Corona virus job retention scheme – What we know and understand so far


Where home working is not possible, employers can lay off employees subject to the Furlough Scheme announced on 20 March 2020



How it works

The government has published a short overview for employers and a separate overview for employees, and we are expecting more information imminently
Whilst detailed guidance is needed, the position appears to be as follows:

It is unclear whether or not the figure is gross or net (the expectation is that it is gross) and it appears to include “all” employment costs”, which could include employer’s NI

Whilst the employer is likely to be required to pay Employer’s National Insurance contributions for furloughed staff, whether or not contractual benefits would also apply to them will be a matter of negotiation between the employer and the employee

For more information please see:

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