You are here

Last Updated: Monday, September 6, 2021

Help you could receive if your job is affected by Covid-19 (Coronavirus Job Retention Scheme)

About the Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme "Furlough"

Please note that the Coronavirus Job Retention Scheme will be ending on 30 September 2021. Claims for September must be submitted by 14 October 2021 and any amendments must be made by 28 October 2021. From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.

Redudancy

You may be eligible to apply for payments from the Insolvency Service if you were put on furlough and then made redundant because your employer is now insolvent. Your employer does have the right to make you redundant while you are on furlough or afterwards. However, they must follow legal redundancy processes, such as consultation and protection against unfair dismissal.

You have certain rights when you’re made redundant. These include getting redundancy pay, a paid notice period and any money your employer owes you (for example, unpaid wages). You still have these rights even though you were put on furlough when you were made redundant. 

If you are on Universal Credit

If you are earning less because you are on furlough, your Universal Credit payment might change. See here for further guidance about how earnings affect your payments.

If you’re getting Maternity Allowance

If you’re getting Maternity Allowance while you’re on maternity leave, you cannot get furlough pay at the same time.

If you have agreed to be put on furlough, you must contact Jobcentre Plus to stop your Maternity Allowance payments.

 

 

 

Sources:

 

Eligibility

You can be on any type of contract and still be eligible for the scheme as long as you work on the PAYE system. It applies for all the following: full-time employees; part-time employees; employees on agency contracts; and employees on flexible or zero-hour contracts.

You can also be furloughed if you are:

  • an apprentice
  • an agency worker
  • employed by an individual (for example as a nanny)
  • on a fixed term contract (your employer can choose to renew or extend your contract during the furlough period)
  • a small business owner who pays themselves a PAYE salary
  • unable to work because you have caring responsibilities resulting from coronavirus (for example, if you need to look after children)
  • at very high risk of severe illness from coronavirus because of an underlying health condition, or if you are living with a very vulnerable person and so are following  the government advice to ‘shield’ yourself (staying at home at all times and avoiding any face-to-face contact for a period of at least 12 weeks)

If you have more than one employer, you can be put on furlough by each and will receive separate payments. You can be put on furlough by one employer and continue to work for another.

Employees on all categories of visas can be furloughed. This includes workers with No Recourse to Public Funds (NRPF). If you have a visa with no recourse to public funds (NRPF) being placed on furlough will not be regarded as a breach of your visa condition.

You will not be eligible if

  • You are an undocumented migrant or working in the informal economy
  • You are still working during this lockdown period but are on reduced hours or receiving reduced pay
  • You are absent from work on a short-term basis due to illness. If this applies to you, you may be able to receive statutory sick pay instead (see section on Statutory Sick Pay)
  • You are a seasonal worker who was due to start work after 19 March 2020 but had not yet begun their contract
Sources:

 

Payments

From 1 July 2021, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.

For claims from 1st July 2021, employers must top up employees’ wages to make sure they receive 80% of their wages (up to £2,500) for the hours they are on furlough

For further guidance on calculating payment, you can use the government’s Coronavirus Job Retention Scheme calculator

If you are concerned that your employer has claimed on your behalf but is not paying you what you are entitled to, you should raise this with your employer in the first instance, then with the Advisory, Conciliation and Arbitration Service (ACAS).

Sources:
Terms and conditions of being on the scheme (on furlough)
  • Both you and your employer must agree to put you on furlough. Once agreed your employer must confirm in writing that you have been furloughed in order to make the claim.
  • You can be placed on furlough for a minimum of three weeks and for at least 4 months.Your employer is allowed to rotate their staff on and off furlough and introduce other flexible working arrangements. So, you could be asked to spend three weeks on furlough and then work for three weeks or you could be asked to work for two days a week in which case your employer would pay you or those two days as normal, while the furlough scheme will continue to cover you for the other three working days.   
  • Once on furlough you are not allowed to do anything that provides services to or makes money for your employer or any affiliated organisations. If you continue to work while on furlough, your employer will have to repay the grant to the government.
  • While on furlough you can do trainings as long as they do not directly involve providing services or generating revenue for your employer.
  • If your contract allows, you may undertake other employment while your current employer has placed you on furlough without affecting the amount you receive under the job retention scheme.
  • You are still entitled to all employment rights when on furlough, including: Statutory Sick Pay, Maternity pay and other parental rights, rights against unfair dismissal, redundancy rights.
  • Your employer does have the right to make you redundant while you are on furlough or afterwards. However, they must follow legal redundancy processes, such as consultation and protection against unfair dismissal.
  • If you refuse to be furloughed you may be at risk of redundancy or termination of employment, depending on the circumstances of your employer.

 

 

Sources:
 

Click here for information on support for the self-employed

Click here for information on worker rights

Feedback