Coronavirus: Pay rights under the “Job Retention Scheme”

Under the government’s Coronavirus Job Retention Scheme you will receive 80% of wages up to £2,500 per month. You’ll still be paid by your employer and pay taxes from your income. You cannot undertake work for your employer while on furlough Below is the latest update on how the scheme will work. The situation is changing all the time but as far as we are aware the following is correct as we understand it as of Monday 30th March.

Are you eligible?

Any UK employer with a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll on 28 February 2020. You can be on any type of contract, including a zero-hour contract or a temporary contract. The scheme does not apply to the self-employed.

If you’re on sick leave or self-isolating because of coronavirus (COVID-19), speak to your employer about whether you’re eligible – you should get Statutory Sick Pay (SSP) while you are on sick leave or self-isolating, but can be furloughed after this.

Your employer can agree to re-employ you and place you on furlough instead. They’ll still be able to claim a grant to cover 80% of your monthly earnings, up to a monthly cap of £2,500

If you have been made redundant after February 28th

Your employer can agree to re-employ you and place you on furlough instead. They’ll still be able to claim a grant to cover 80% of your monthly earnings, up to a monthly cap of £2,500

If you currently have more than one employer

You can be put on furlough by one employer and continue to work for another, if it is permitted within your employment contract.

If you’re put on furlough by more than one employer, you’ll receive separate payments from each employer. The 80% of your normal wage up to a £2,500 monthly cap applies to each job

How much will I be paid?

You will be paid 80% of your monthly earnings, up to a maximum of £2,500, backdated from 1 March.

You’ll still pay Income Tax, National Insurance contributions and any other deductions from your wage.

How will my earnings be calculated?

If you’ve been employed (or engaged by an employment business in the case of agency workers) for a full year, you can claim for the higher of either:

the amount you earned in the same month last year

an average of your monthly earnings from the last year

if you’ve been employed for less than a year, you should be paid for an average of your monthly earnings since you started work. The same arrangements apply if your monthly pay varies such as if you are on a zero-hour contract.

If you started work in February 2020, your employer will pro-rata your earnings from that month.

Bonuses, commissions and fees are not included as part of your monthly earnings.

For further information follow this link