Furlough: the challenges ahead

David Reade QC and Daniel Northall from Littletons examine some of the legal and practical challenges which employers face in connection with the Government’s Coronavirus Job Retention Scheme.

The Coronavirus Job Retention Scheme was part of the Government's answer to an urgent question: as the Covid-19 crisis gripped the nation, how could economic catastrophe be avoided as businesses closed at alarming speed?

The basic provision under the proposed scheme is now well known: through an HMRC administered scheme, the state will underwrite 80% of the wages of staff who are "furloughed", but remain employed, up to a monthly limit of £2,500.

In this article we attempt to distil and discuss some of the practical and legal issues which have emerged from discussions we have had in recent days with solicitors and clients. We emphasise that the detail of the scheme is yet to be published and our views will need to be revisited once the terms of the scheme and any accompanying legislation become known.


Published: 27/03/2020 10:50

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