COVID-19: How will the Government’s promise to pay 80% of staff salaries work?

NOTE: It is now too late to put somebody on furlough for the first time, as 10 June was the last day.  But if someone is or has previously been on furlough, they are eligible to continue until the scheme closes on 31 October 2020. However, the 10 June cut-off date does not apply to those who are returning to work after paternity or maternity leave.

The Government has announced a range of support measures for businesses and employers, including a commitment to pay 80% of staff salaries. 

Is there an eligibility criteria?
All UK businesses irrespective of size are eligible

How long will it last?
It will last until the end of October 2020. See Furlough scheme to wind down gradually

What will it cover?
A grant for 80% of wages up to £2.5k per employee, but this will reduce in stages to 60%. There is no limit on the number of employees but they must be furloughed.

How will it be claimed?
See our detailed article on this.

Will it apply to employees who have already been laid-off?
Yes, provided those employees are brought back into the workforce.

Is the amount paid by the government repayable?
It is a grant, not a loan, so it will not be repayable

There is more information in the articles linked to, but if you have any queries in the meantime then please do not hesitate to contact us directly.

Share

Keep up to date

Key contacts

Related insights