Disclaimer: this is our interpretation based on the information available and may be subject to revision so please check before acting upon it March 2020
It answers a number of questions
- Ers NI and the basic minimum employers pension contributions will be covered
- There is a mechanism for flexible/zero hours contracts
- Staff can do training whilst not working – they must be paid NMW/NLW for the hours they are training
- It is based on the actual basic salary before tax of 28 February – not fees commissions or bonuses
- It refers to employees whose pay varies – pay based on either same months earnings for previous year or average monthly earnings for 2019/20 since started work if partway through 2019/20
- Minimum length of furlough is 3 weeks
- The online portal claim will be limited to one claim every three weeks in respect of a payroll already paid or in advance of a payroll
This I think starts to help the directors of small companies – unless we are advised other wise – If your work has dried up and you know you will not have any income you may choose to furlough yourselves for a limited period – say initially for the month of April or earlier if appropriate – IT MEANS YOU CANNOT WORK – if you think you will still be able to work on eg that business plan / marketing plan etc you may decide you have not stopped work.
This will mean you can reclaim 80% of the basic salary you receive – often £719 per month.
You should write a letter from your company to yourself stating the date you are furloughed from and the review date (at least 3 weeks).
You can then furlough for a period and come back if you need to.
If you are still “short” of income and there are no dividends to draw or cash to take then please consider Universal credit.