Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. All UK businesses are eligible.

Businesses will need to:

• Designate affected employees as ‘furloughed workers’ and notify employees of this change. Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation; and
• Submit information to HMRC about the employees that have been furloughed and their earnings through a new online portal.

HMRC will reimburse 80% of furloughed workers’ wage costs, up to a cap of £2,500 per month. We understand that HMRC is working urgently to set up a system for reimbursement as any existing systems are not set-up to facilitate payments to employers.

Further information is available at:

• https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
• https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme