Employee FAQ on Furlough

My employer wants to furlough me – what does that mean?

With the downturn in business generally, and specifically in some areas with businesses force to close, there is in some workplaces less work to be done. This means less income and employers are struggling to pay wages and salaries.

To support businesses the furlough (Employee Retention Scheme) has been introduced by the government. The purpose of this is for employers to be able to retain staff by pay up to 80% of the employees wages to a maximum monthly allowance of £2500 per month.

The scheme allows employer to claim for any employee who was employed on 19thMarch 2020 and whose employer has registered them as an employee with HMRC. The initial scheme is open for 12 weeks from 1st March to the end of May (now extended to the end of June). A claim is made by your employer and then passed to the employee with first payments not expected to be received until the end of April at the earliest.

How long will the furlough last?

The minimum period an employee can be placed on furlough is three weeks. It can be the case that for some businesses may rotate staff during the furlough period or give notice for a period of holiday to be taken. However each time you are furloughed, after a period of holiday or working it will be for a minimum of three weeks.

Do I have to work if I am placed on furlough?

If you are placed on furlough by your employer you cannot do any work for them that would allow the business to earn any money from your actions. This means that you cannot work part time and have your wages topped up to 80% by the furlough payments.

You can do training but you must receive at least the National Minimum/Living Wage for the time spent doing this. You can also do volunteer work provided that it does not earn money for your employer.

Do I have to agree to being put on furlough?

Whilst it is your employers choice who to place on furlough and whether to furlough any staff at all, it is part of the process that you as an employee should agree to a change in your terms and conditions to allow this to happen.

This is an important part of the process as for the period of time for which furlough is in operation, there will be a change to your standard terms and conditions. Principally these are that you will not be required to attend the workplace and your salary may be less than is normally paid.

These changes cannot generally be made without consent. It is usual therefore to receive a letter from your employer setting out the terms of the furlough asking you to agree to this by responding and accepting.

If you do not agree to this it could be that your role is terminated or is made redundant.

I am paid commission as part of my salary – will this still be paid?

The amount your employer can claim under the furlough scheme are to include your salary, tax, national insurance contributions and basic stakeholder pension contributions. No claim can be made for any commission that has been earned or may be earned in the future.

What will happen to my holiday whilst I am on furlough?

While you are on furlough your holiday entitlement will continue to accrue. This means that any holiday that would have been earned during the time will not be lost and will be available to take at another time.

Recognising this could mean that employers may face a large number of employees wanting to take a lot of holiday in a reduced period of time to the end of the holiday year, new legislation has been passed to allow employers to allow any unused statutory holiday to be taken over a period of two years.

This means that 20 days of your annual holiday entitlement will not necessarily be subject to the ‘use it or lose it’ policy but may be taken over the following two years. Taking holiday is of course always subject to the consent of your employer and the requirement to make sure all holiday taken fits with the needs of the business.

I am pregnant – does my employer need to do anything to keep me safe?

Being pregnant puts you in the vulnerable category of employees as defined by government guidance. The list also includes those who are over 70 and/or suffer with other conditions such as diabetes or asthma. Pregnant employees who also suffer with additional complications such as an underlying heart condition are classed as very vulnerable and are subject to shielding (see below).

Your employer has a duty of care towards you which means they should undertake a detailed risk assessment and allow you to work from home if possible. Guidance original issued by the government required those in this vulnerable category and to practise social distancing which is of course something we are all now obliged to do.

What steps an employer can do to keep you safe, does of course depend on the job that you do and what flexibility there is within the role. Some jobs do require a physical presence and in those cases there is no real flexibility to change that. For pregnant employees who feel anxious about this we suggest discussing the issues with your midwife and doctor.

I am pregnant – can my employer still place me on furlough?

The selection of staff to be placed on furlough may well be no selection at all as it may involve all staff. In circumstances where not all staff are to be included it is possible to select those who are pregnant and indeed some employers may consider this to be one of the fairest options is view of that fact they fall into the vulnerable category.

I have received a letter telling me to stay at home for twelve weeks – what pay will I receive?

If you have received a letter like this you are referred to as ‘shielded’ employee as you are suffering with a condition which means that should you contract covid19 the impact on your health could be significant or even fatal. In accordance with the letter you must stay at home and as such you will be entitled to receive SSP or contractual sick pay if that is provided by your employer.

Shielded employees can be placed on furlough and receive the relevant payments under that scheme where your employer furloughs your role.

My partner has a serious medical condition – can I stay at home to keep them safe?

Anyone who either has the symptoms of the corona virus or is living with someone who does, must self-isolate for 7 or 14 days and during this time you will receive SSP or contractual sick pay.

You cannot self-isolate, and automatically receive SSP or contractual sick pay, to keep a partner or other family member safe. This applies even when they may fall into the vulnerable category or have been identified as an individual who needs to be shielded (see above).

It is natural to want to make sure that that your relative has limited exposure to anything outside the home but if you are working there is no automatic right for you to remain at home. You may consider discussing this with your employer and explore the possibility of different working arrangements to try and limit any contact with colleagues or customers. If you are anxious about this you should consider discussing the matter with your GP.

I am frightened about catching the virus – can I stay at home?

As above, there is no right to remain away from the workplace. If you have concerns you should try to discuss them with your employer to explore any alternative working arrangements to try and limit contact with colleagues and customers. A discussion with your GP may assist.

Does my employer have to make up any balance of my income not covered by furlough payments?

The maximum payment for each employee per month is £2500, gross which means after deductions will be less. On the basis that this is a maximum of 80% of an employees salary those who earn more will receive a lesser percentage of their usual salary.

Employers are not obliged to make up any shortfall to bring the payment to 100% of their usual payment. It is a matter of discretion and of course having the relevant funds to make those payments.

I have savings will that affect my rights to furlough payments?

Your personal financial circumstances will not be taken into account when the claim for payment is made. The amounts will be calculated in accordance with your income during the last tax year or calculated in accordance with the same month last year. For those with less than a years employment with their employer will have their income calculated by reference to the average over the months worked.

Am I allowed to work elsewhere if I am placed on furlough?

You may already have a second job, if so you should able to continue to do that job and receive salary for that. It may be that role is also placed in furlough in which case you should receive a furlough payment for each job.

It may be that you feel you want to take on other work to make up any shortfall in your current salary. Generally, if your contract requires the consent of your employer to take on a second role you should request such consent. It will usually be the case that you can only undertake further work if that work would take place at a time when you would not normally be working in your job from which you are furloughed.

If your contract does not require to seek your employers consent to take an additional job it still remains the case that you may not be entitled to a furlough payment if that work takes place at a time when you would otherwise be working in the furloughed role.

I am between jobs and my new employer wants to delay my start date – can I still be placed on furlough with my old employer?

An employer can apply for furlough payments for an employee where that employee was employed on 28th February. We have had calls from a number of employees who have been employed on that date but left shortly afterwards to start a new job only to find the start date for that role has been delayed.

Previous guidance stated if the employee had been made redundant they could be reinstated to take advantage of the scheme. This has now been amended to a allow employers to reinstate anyone who left their employment after 28th Feb for whatever reason. It is however your ‘old’ employers decision whether to include you in their furlough claim, or not.

Can I be made redundant if I am placed on furlough?

The creation of the furlough scheme is intended to save jobs and to provide businesses with more time to consider any significant and possibly permanent changes to the workforce. It does not, however, mean that employees cannot be made redundant at this time or indeed before furlough begins or ends.

It is important to remember that all employment law considerations continue to apply so any employer seeking to make redundancies must follow a fair process.

Can I be furloughed whilst self-isolating or on sick leave?

If you are unwell you may still be included in the number of staff who are furloughed. You will not however receive the furlough payment for that period of illness but continue to receive SSP for that period. Once that period of illness has come to an end you will then be entitled to receive furlough payments if your job has been designated furloughed.

* The information on this page is supplied by Law Express who run ARAGs legal advice line.