Coronavirus: How to staff wages, also known as the Job Retention Scheme
On Friday the 20th of March the The UK Chancellor Rishi Sunak set out a package referred to as temporary, timely and targeted to support public services, people and businesses through the period of disruption caused by COVID-19.
During the Coronavirus pandemic, all UK employers will be able to access support to continue paying 80% of employees’ salary for those employees that would otherwise have been laid off during this crisis.
All UK businesses are eligible.
How to the scheme works
- Designate affected employees as furloughed (on leave of absence) workers.
- Notify your employees of this change (changing the status of employees remains subject to existing employment law and, depending on the employment contract of the employee) Speak to your HR team but handle it also with the utmost respect for the individual.
- Submit information to HMRC about the employees that have been furloughed (Details about where to make submission will be updated when we know.
- The earnings of the employees will also be submitted through a new online portal (HMRC will set out further details on the information required)
HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.
Businesses in need of short term cash flow support, may be eligible for a Coronavirus Business Interruption Loan.