Furlough is a term that has been widely used during the COVID-19 pandemic. The government has put in place measures to support businesses and individuals who have been affected by the pandemic. One of these measures is the furlough scheme, which allows employers to retain their employees even when there is no work for them.
Zero-hours contracts are employment agreements that do not guarantee a minimum number of working hours per week. These contracts are common in industries such as hospitality, retail, and healthcare. If you are on a zero-hours contract, you may wonder how the furlough scheme works for you.
The furlough scheme allows employers to claim up to 80% of their employees` wages up to a maximum of £2,500 per month. This includes employees on zero-hours contracts, provided they were on the employer`s payroll on or before 19 March 2020. The scheme has been extended until September 2021.
If you are on a zero-hours contract and have been furloughed, you will receive 80% of your average monthly earnings from the previous tax year, or your average monthly earnings from the same month in the previous year (whichever is higher). This includes any regular overtime payments, but does not include earnings from additional work outside of your contract.
If you have been on the payroll for less than a year, your employer will use your average earnings for the time you have been employed to calculate your furlough pay. If you have been employed for less than a month, you will not be eligible for the furlough scheme.
It is important to note that while you are on furlough, you cannot work for your employer or any other organisation that is associated with your employer. This means that you cannot undertake any work that provides services to or generates revenue for your employer.
If you are on a zero-hours contract and have been furloughed, you may be anxious about your financial situation. However, the furlough scheme is designed to provide temporary financial support to employees during this challenging time. If you have any concerns or questions about your eligibility or furlough pay, it is important to speak to your employer or a legal professional.