As the coronavirus continues to wreak havoc on industry and economy the government has announced a scheme to ensure furloughed workers continue to get paid.
Called the coronavirus job retention scheme, it means workers who have been put on temporary leave – also known as being furloughed – will continue to receive as much as 80% of their earnings while not on the job.
Here's everything you need to know about the scheme and whether it applies to you.
How do I apply for the scheme?
Individuals who have been furloughed do not need to apply for the scheme themselves. Instead it's up to employers to register for the scheme in order to pay staff and avoid redundancies.
In order to benefit from the scheme as a furloughed employee you must have been on the business' PAYE payroll on February 28, 2020, on any type of contract including:
- full-time employees
- part-time employees
- employees on agency contracts
- employees on flexible or zero-hour contracts
It does not benefit people who were made redundant before February 28. If you were made redundant after that, you will have been on the business's PAYE payroll at that point and the firm can re-employ you and put you on furlough.
The scheme pays a wage of up to £2,500 per person per month.
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How much money will I get?
If you're eligible for payment under this scheme you will receive 80% of your monthly wage up to £2,500.
Some employers may choose to pay the remaining 20% of of your wage though they are not obligated to do so.
Those who face a reduced wage while on this scheme may be eligible for Universal Credit.
Funds are guaranteed through the scheme for at least three months beginning on March 1.
After that point the government said it will extend the scheme if deemed necessary.
When will I get paid?
The online service the government is launching to support this scheme will not become available until April 2020. This means employees will not receive payment through the scheme until after this time.
For more information on the coronavirus outbreak in the UK follow our live blog here.
