Since the Job Retention Scheme was announced I have received several emails and phone calls asking what does Furlough mean and how does it apply to my business.
To furlough means to “lay off or suspend temporarily”, usually without pay. It’s not a recognised term in UK employment law, although it is commonly used in the US, which is why it left many puzzled when the Chancellor used the term in his in plan.
Government guidance says someone is furloughed if they remain employed but are not undertaking work.
So what does it mean for your Company?
Any UK employer can apply to the scheme to temporarily cover people’s salaries, including businesses, charities, agencies and public authorities. Employees have to agree to be put on furlough — and an individual can’t apply by themselves.