Firstly, for the Staff Retention Scheme update, we were advised to keep records of the ongoing furloughing of employees. At the end of each furlough period, you needed to advise whether it should continue. As this constituted a change to their contract, employees were required to agree by responding to your email. Jen had prepared a template letter/email for this purpose, as attached.
Return off furlough letter
If it was deemed appropriate to end the Furlough, she provided a template email for you to use.
All correspondence related to Furlough had to be kept for five years.
The Furlough Portal went live
This was an extract from the Government’s website.
Unfortunately, as HR professionals, we couldn’t advise further on this. You had to speak to your accountant for advice and support.
The Government’s Coronavirus Job Retention Scheme went live today with businesses able to claim up to £2,500 a month towards staff wages.
Employers can apply for direct cash grants through HMRC’s new online portal – with the money expected to land in their bank accounts within six working days.
The job retention scheme, announced by Chancellor Rishi Sunak as part of a package of support to protect jobs and businesses, allows employers to claim for a cash grant of up to 80% of a furloughed employees wages, capped at £2,500 a month.
Millions of people across the UK are expected to benefit from the scheme, with businesses including Pret a Manger, Brewdog and Timpsons using it to ensure staff keep their jobs and are paid whilst many high street businesses are closed.
HMRC’s easy to use portal has a step by step application process and up to 5,000 staff will be manning phone lines and webchat services to ensure any questions can be answered.
Chancellor of the Exchequer, at the time, Rishi Sunak, said:
Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running.
It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.
Last week the Chancellor announced the scheme will be extended for a further month until the end of June, to reflect continuing Covid-19 lockdown measures.
Our research indicates that two-thirds of firms have furloughed some portion of their workforce. With April’s payday approaching, it is essential that the application process is smooth and that payments are made as soon as possible. Any delay would exacerbate the cash crisis many companies are facing and could threaten jobs and businesses.
The Job Retention Scheme is part of a package of measures announced by the Chancellor to support the country through the coronavirus pandemic. He has already supported employers with a £30bn injection of cash by deferring VAT payments for the next quarter, has launched a scheme for the self-employed, loans for businesses and a rise in Universal Credit.
Further information
- Employers can furlough anyone they employ, provided that on or before March 19 they were on PAYE payroll and HMRC has been notified of payment via the RTI system.
- See further information about government support for businesses.
How these measures impact today’s workplace
While the specific furlough scheme described is no longer in effect, its legacy continues to shape how businesses handle workforce management and financial crises.
Key takeaways for today’s environment:
- Remote work adaptations: Many businesses that adapted to remote work during the pandemic have continued these practices, integrating flexible work arrangements into their long-term strategies.
- Financial planning: The experience underscored the importance of robust financial planning and crisis management, with many companies now maintaining stronger financial reserves.
- Support systems: The pandemic highlighted the need for comprehensive support systems for employees, leading to improved policies on employee wellbeing and financial assistance.
These lessons from the furlough scheme era remain relevant as businesses navigate new challenges and strive for stability in an evolving economic landscape.