On 20 March 2020, the UK Government announced plans to set up a
Coronavirus Job Retention Scheme as part of a package of temporary
measures to support businesses amid the disruption caused by
COVID-19. At present, details of the scheme are limited, but the
announcement indicated that all UK businesses (regardless of size)
will be eligible to participate.
UK employers will be able to apply to HMRC for a grant which
will reimburse 80% of the wage cost of employees who are designated
as “furloughed workers”, up to a cap of £2,500
per month. Employers will be able to choose whether to top-up the
wages of furloughed workers to their normal level.
The scheme will cover the cost of wages backdated to 1 March
2020. It is proposed to be available for at least three months,
with a review at that time. The government expects to make grant
payments by the end of April.
