Updated: Mar 27, 2020
On Friday the government announced details of the Coronavirus Job Retention Scheme.
What is it?
Under the Coronavirus Job Retention Scheme, all UK employers will be able to access financial support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis.
The information we have been provided by the government is currently incredibly sparse. We believe it is likely to support all businesses who would otherwise have made employees redundant. We do not know if it will provide support to businesses who are looking to undertake short time working (reduce hours/salary) in order to reduce their overheads and we expect further details today.
The guidance issues by the government for employees states that ‘to qualify for the scheme, you must not undertake any work for your employer whilst you are furloughed’ which may suggest that the support will only be available is an employee is fully laid off. We expect further guidance on this point in the coming days.
All UK businesses are eligible, whether limited companies, limited liability partnerships, partnerships or sole traders.
How the scheme works
The government guidance states that you will need to:<