Small Business Employee Wage Support
When considering applying for this support and if you’re going to furlough someone be aware:
- They must have been on payroll on 28th February
- Cannot be someone employed on 1st March or afterwards
- Can include people made redundant since 1 March and rehired to be furloughed
- The furlough period must be for at least 3 weeks.
- They cannot do any work.
- You claim the grant towards wages every 3 weeks on the system that has not been created yet
- The scheme runs for 3 months from 1st March
- At the end of the scheme the employee returns to work or is made redundant.
- If an employer chooses instead to reduce hours or pay and people work that is OK but they cannot be furloughed.
- Selection of people to furlough must be non-discriminatory, fair and objective.
- Contractually the employer must have a right to lay off, vary hours or wages or similar so he can furlough (especially if only paying the 80%).
- If no contractual right to furlough exists I advise then enter furlough agreement with employee by consent as alternative to redundancy.
At a time when Brexit is creating division and worry and small businesses are struggling to make a living the last thing any business needs is a bad debt or a dispute. There are not many effective resources out there to help when a business needs to take action that don’t cost an arm or a leg. The “Small Claims Portal” – Small Claims Portal is one resource that offers an effective alternative to other expensive litigation routes.