The Coronavirus Job Retention Scheme (CJRS) and Furlough – what it means for businesses

To support you and your business through this difficult time, Garbutt + Elliott have created a comprehensive guide which gives you more information on the Coronavirus Job Retention Scheme and a detailed overview of Furlough and what it means for businesses.

The key objective of the Scheme is to help employers retain employees during the Coronavirus pandemic in the hope that the economy will be able to quickly bounce back at the end of the national emergency.


Employers who find it necessary to lay employees off temporarily on furlough can apply to HMRC for a grant to help retain those staff. The grant will cover up to 80% of the employee’s usual monthly gross pay up to a maximum of £2,500 per employee per calendar month, plus the associated employer’s NIC and minimum automatic enrolment employer pension contributions on that pay. This help is available to any business or organisation that had a PAYE scheme established before 28 February 2020 and needs to furlough employees who were on the payroll at 28 February 2020.

What is furlough and what does it mean?

Furlough is not a recognised concept in employment law but, in essence, it means sending employees home, where there is no expectation or requirement for them to work, whilst retaining them on payroll. Furloughed employees will be placed on furlough leave and will continue to be employed for the duration of such leave. These employees will continue to accrue continuous service (relevant for future redundancy exercises) and holiday (both statutory and contractual) as if they had been at work.

Your questions on furlough answered

For more details on furlough and what is means for your business, read this useful guide:
The Coronavirus Job Retention Scheme and Furlough


Should you require assistance, please contact our Payroll Partner Sarah Ashton on, alternatively the Garbutt + Elliott team will be happy to help.