BUSINESS
How to furlough a
member of your team.
1
STEP ONE
Communicate with your team. Let them know that you are looking to furlough them and why. This conversation can take place in person, or virtually, depending on your circumstances.
Please note, from December 2020 HMRC will publish the names of companies and Limited Liability Partnerships (LLPs) who have made claims under the scheme for the month of December onwards.
2
STEP TWO
Decide if you are going to ‘top-up’ the government grant of 80% to 100% of the furloughed employees salary. Please note even though the government will now cover the full 80%, you must still cover your employees pension and national insurance contributions.
3
STEP THREE
An ‘agreement to furlough’ letter will then need to be given to any relevant employees. Written consent is needed, so this letter must be signed.
Please contact us for further guidance on writing your ‘Agreement’ Letter.
4
STEP FOUR
You should then follow this with a ‘confirmation of furlough’ letter once the agreement has been signed. It is a good idea to include the following:
- the date furlough starts
- how much the furloughed worker will be paid
- when the furlough will be reviewed
- how to keep in contact during the furlough period
Please contact us for further guidance on writing your ‘Confirmation’ Letter.
5
STEP FIVE
HMRC will then need to be notified of who is being furloughed, from which date, and if you are topping up any salaries. Claims from 1 November 2020 must be submitted 14 calendar days after the month you’re claiming for.
6
STEP SIX
You should regularly review furlough agreements to see if staff can be put on flexible furlough or return to work full time. To end furlough, you should provide staff notice in writing.
There is no minimum notice period for ending furlough, but you should communicate plans to end furlough as early as possible.
Please contact us for further guidance on writing your ‘End of furlough’ letter.
