Coronavirus: furloughing update

The government updated its guidance on the furlough agreements that must be in place between employers and employees last Friday. In light of this, we are recommending that clients follow a 'belt and braces' approach and action the following points:

  • Based on the previous guidance, if you agreed by mutual consent with specific employees for them to be furloughed, we recommend that you follow this up with a brief letter or email to them reiterating that they cannot undertake any work for you whilst on furlough. You may have already stated this, but in case not, we suggest this course of action.
  • If you previously furloughed certain employees for an initial period (for example April), you should now be preparing to contact them in writing to confirm whether they are to be furloughed again (minimum three weeks at a time).
  • Lastly, the government also announced that the initial period for which employers can furlough staff and claim the grant is now extended by one month to the end of June 2020. Employers can use the scheme anytime during this period.

For further information or advice on any of the issues raised, or for help with services like bookkeeping, cash flow management or payroll during the Coronavirus pandemic, please call us on 01225 325580, email, or contact your usual client director.

Please note that this is only a summary of the main issues and should not be construed as advice. Every effort has been made to ensure factual accuracy at the time of publication (20 April 2020), however, the government response to the Coronavirus situation is changing 24-7, so it should not be relied upon completely.