Navigating Furlough – Live Q&A

Thursday, April 16th, 2020

In preparation for the applications opening for the new Coronavirus Job Retention Scheme, known as Furloughing staff we conducted a live Q&A session to answer some of our members questions about how it works.

We invited members Sandra Porter from HR Dept and Bruce Burrowes from Kingston Burrowes Accountants to join us.  The questions submitted for discussion were:

Member Question 1 
We made some employees redundant in March 2020. Can we now reinstate them and put them onto furlough leave?

Member Question 2 
Can a Director Furlough themselves, can they still operate at all to ensure the business can still resume trading later? What about Dividends? Can I still market my business or continue with my business social media to ensure my business stays active?

Member Question 3 
Will workers continue to accrue holiday allowance while they are furloughed? And can people take their holiday allowance while furloughed?

Member Question 4 
I have heard that if we are furloughed, we can still work elsewhere and that I could possibly then continue working as a freelancer. If I were to do this would I simply invoice without using the company and register myself as sole trader?

Member Question 5 
I outsource my payroll who charge me for a service. Can they charge me more for this additional furloughing service? Can I claim this back in any way to cover my costs?

Member Question 6 
Do we require employees’ consent to put them on furlough leave, bearing in mind this means that they won’t be performing any work and, if we don’t top up the Government contribution, they will have a 20% pay cut?

Member Question 7 
My basic salary is very low but I earn commission. My employers say I am only entitled to 80% of my basic and nothing else, but I’ve read that if my pay varies, then I’m entitled to the same pay based on the previous tax year?

Member Question 8 
Is there a minimum – maximum period I can furlough for and how will I let my employee know / what notice will I have to give if I change this arrangement? Can they be furloughed more than once. (Can we rotate employees on furlough?)

You can watch the session online here(Access Password: y4^dbY#7) 

You may wish to access the Government guidance for employers for more information.

 

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