Employers can choose to ‘furlough’ staff who were employed on or after 28 February 2020. A furloughed worker simply means a worker not provided with any work but being kept on the payroll. The worker will remain employed while furloughed (and continue to accrue holiday and be protected under employment law). This includes zero-hour workers.
The Government will reimburse, by way of a grant, 80 per cent of all furloughed staff’s wages to avoid employers having to make them redundant. This is subject to a cap of £2,500 per worker per month plus associated National Insurance contributions and automatic enrolment pension contributions.
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