Help is on the way for UK employers and employees who are facing unemployment for several months due to the coronavirus pandemic.
The United Kingdom government has come up with a new scheme that will help furloughed workers to get 80 percent of their monthly salaries.
The ongoing coronavirus crisis has shut down several businesses in the UK, making workers lose their jobs.
However, government officials have created the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme to provide income for workers who are negatively impacted by COVID-19, the disease caused by the new coronavirus.
All UK employers are entitled to 80 percent of employees’ usual wages to cover their salaries under the Coronavirus Job Retention Scheme.
The scheme is applicable for employers whose business started on or before February 28, 2020. They can claim up to 80 percent of an employee’s usual salary, up to £2,500 a month.
The Coronavirus Job Retention Scheme safeguards workers from being made redundant. The scheme is originally open for three months. If necessary, it will be extended.
All UK employers must entitle their employees as “furloughed workers” if they want to access the scheme. And then the employers should notify their employees of the change. Once the scheme is live, employers must submit the information to Her Majesty’s Revenue and Customs (HMRC).
Employers should claim wage costs using the Job Retention Scheme.
Fees, commissions and bonuses should not be included as part of employees’ monthly earnings. Non-cash benefits are also excluded in the scheme. The scheme covers allowances that are a fixed part of the monthly salary.