MSE News

MoneySavingExpert.com
News
2020
April
Coronavirus Employees' Help

Coronavirus Employees' Help

Your rights including how the furlough scheme works & who's eligible

Kit Sproson, Mortgages & Reclaim Writer | Edited by Johanna Noble, Associate Editor

2 June 2020

The coronavirus pandemic has fundamentally changed the way we live. It's an anxious and upsetting time, and while the primary concern is health, many of us have lost our jobs or been furloughed by our employers. This guide looks at your rights at work as an employee, including who's eligible for furlough, what the furlough scheme does, and what other help's available.

Important: The info below is the best we have currently, but as this is a fast-changing situation we're updating this guide all the time. If you've a question that isn't covered below or in the other coronavirus guides, please email it to us (we can't respond with personal advice but we'll try to add answers in these guides).

In this guide

The furlough scheme
Gig worker, freelance or agency? Find support
- Supply teachers CAN be furloughed on 80% of core salary

You can get statutory sick pay from day one
Looking after children and your rights at work
Other rights as an employee
Warning – watch out for coronavirus scams

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out

FAQs Privacy Policy Past Emails Unsubscribe

The furlough scheme – who's eligible, how it works and how much you'll get

In a response to the pandemic, the Government has brought in the furlough scheme – officially called the Coronavirus Job Retention Scheme (CJRS) – to help employers pay their workers during lockdown, even if there's no work for them to do.

Think of this like a job being put on standby. The idea is you go into sleeper mode during the crisis, and then when it's over, they can instantly restart things and get the economy running again.

The scheme was launched in March, but the way it operates is set to change from the beginning of July. We've more detail on this below, but first here's how the scheme currently works...

How furlough scheme will work until end of June

This is how the scheme has been operating since March, and how it will work until 30 June 2020.

The state pays your employer 80% of your salary, up to £2,500/month.
You need to have been on your employer's payroll on 19 March 2020. When the scheme was launched, it applied to those on their employer's payroll by 28 February 2020. However, the Treasury extended the scheme to include people who were on a company's payroll on 19 March 2020.

However, there's a technical caveat here – it's likely you need to actually have been paid at least once by your employer by then. This is because your employer needs to have made a payroll submission about you to HMRC on or before 19 March. We say it's likely you'll need to have been paid as it's possible your company could have made a payroll notification to HMRC before the cut off, even if your first salary payment came after. To help, Martin's done a video explaining this caveat.

If you're not furloughed by Wednesday 10 June, you won't be able to be furloughed in future. The technical cut-off for new entrants is 30 June 2020, but as furlough works in three-week cycles, for practical purposes the LATEST point you can be placed on furlough is Wednesday 10 June. If you've not been placed on furlough by Wednesday 10 June, then you won't be able to be furloughed in future.

Your employer can choose to 'top up' the Government grant. It can pay your full salary while you're furloughed – but it's not obliged to do this. And indeed, many won't have the funds to be able to do this.
It's up to your employer to decide and define who is furloughed. It could be because you've no work to do, but it can also be because you have to be home to look after children or you're self-isolating. The key to this is that the state is looking to support people, so this isn't about loopholes to catch people out, it's about a broad sweep to gather people in.
You'll still need to pay tax and national insurance contributions on this wage. Once the cash arrives with your employer, it needs to put it through the normal payroll process to ensure it's taxed.
You have the same rights on furlough as you do as an employee. This includes any entitlement to statutory sick pay or maternity pay, as well as redundancy payments.
You CAN'T work for your employer while on furlough. If you're placed on furlough as part of the Coronavirus Job Retention Scheme, your employer is not allowed to ask you to work while you're furloughed (that's against the rules). It's also your employer's duty to pay you at least 80% of your wage – it can't pay less than 80%.
Check whether you can work elsewhere while on furlough. There's nothing in the furlough rules to stop you from taking a job elsewhere if you're placed on furlough by an employer (doing so wouldn't affect your furlough pay either). But your employment contract may not allow it, so check. The same goes for volunteering for someone who's not your employer.

New. How furlough scheme will work from the beginning of July, including how you'll be paid if you go back to work part-time

The main points of the furlough scheme will remain the same from 1 July 2020, but there are a few important changes...

You'll be able to go back to work part-time

From 1 July 2020, your employer will be able to bring you back to work on a part-time basis. Your employer will have to cover your wage for any hours that you are in work.

There's no limit on the number of hours you can work. For example, If you work a 40-hour week and your employer wants to, it can get you to work 39 hours and then furlough you for the remaining hour. The amount of time you work each week can also vary over the month, with employers varying it week by week.

When you are working, you should be paid your normal wage for those hours. For the hours you're not working, you'll be covered by furlough pay, so you'll get at least 80% of your normal wage. Let's run through an example of how work and furlough pay could interact:

Let's assume you work a 40-hour week, and you earn £1,000 a month for that. On furlough, you don't work and you get £800 a month.

Yet if you went back to work for 10 hours a week, that's a quarter of your normal working time, so you'd earn £250 a month for the work you do. Yet you're still furloughed for 30 hours a week, so you get three quarters of your monthly furlough pay – that's £600.

Adding it up, you'd get a total of £850 a month working those 10 hours, compared with £800 on full furlough.

The Treasury told us that HM Revenue & Customs will announce more details of how the furlough scheme interacts with work on Friday 12 June.

If you stay fully furloughed you'll still receive 80% of your salary, but who pays for it will change

Here's how the scheme will differ...

The state continues to pay your employer 80% of your salary in June and July, up to £2,500/mth. This applies for any time you are furloughed. Your employer has the choice whether to top your salary up to 100%.

From August, your employer will have to contribute more to the furlough scheme. If you're still on furlough in August, the state will pay your employer 80% of your salary, up to £2,500/mth, but your employer will be expected to cover national insurance and any pension contributions.

From September, the state will pay your employer 70% of your salary, up to £2,190/mth. If you're furloughed in September, your employer will need to cover more of the furlough costs. They will be expected to cover 10% of your salary, to bring it up to 80%, capped at £2,500/mth. As per the normal furlough scheme, employers have the option to top up your salary to 100%.

From October, the state will pay your employer 60% of your salary, up to £1,875/mth. If you're furloughed in October, your employer will need to cover even more of the furlough costs. They will be expected to cover 20% of your salary, to bring it up to 80%, capped at £2,500/mth. As per the normal furlough scheme, employers have the option to top up your salary to 100%.

While this doesn't affect you as an employee, at least on the face of it, there could be a serious consequence of this timetable. If your employer doesn't believe your role will be viable if it needs to start paying for it, there's a chance that this escalation of employment costs for the employer could tip it over the edge into seeking to make employees redundant. We hope this won't happen, but there is a chance.

Watch Martin's video for a fuller explanation of the extended scheme and how it works, plus see the Job Retention Scheme guidance.

Embedded YouTube Video

Quick questions

How is 80% of my salary calculated?
The amount the Government will pay will be 80% of your usual pre-tax monthly salary, as it was in their last pay period before 19 March 2020 (this will likely be February's pay).

If your pay varies from month to month – for example, because you're employed on a 'zero-hour' contract – the 80% will be calculated based the higher of:

- Your earnings in the same month of the previous year.
- OR your average monthly earnings from the 2019/20 tax year.

If you've worked for your employer for less than a year, it'll be calculated based on your average monthly earnings while you've worked there. And if you only started with your employer in the last month, your employer will pro-rata your earnings so far and furlough will be 80% of that.

What parts of my pay are included in the calculation?

The grant paid to your employer will be calculated based on your regular, contractual pay. It will include:

Regular wages. These are the normal wages or salary set out in your contract for doing your job.

Non-discretionary overtime. This applies to guaranteed overtime set out in your contract.

Non-discretionary fees. These are fees your employer has contractually agreed to pay for you, eg, chartered membership fees if your role requires you to be part of a professional association.

Non-discretionary commission. This is commission that your employer is obliged to pay you due to the terms of your contract, eg, a certain proportion of a car's sale price for motor dealers.

Piece-rate payments. This applies if you're paid for your output rather than your time, eg, a jeweller paid per ring or a journalist paid per article.

What's not included in the calculation?

Not all the pay and benefits you get as part of your job will be included. The following things won't be used to work out 80% of your pay:

Discretionary commission. This applies where the commission is not part of your contract, eg, tips/tronc for waiters, or tips for hairdressers.

Discretionary bonuses. These are bonuses that your employer can choose to pay, eg, if the company is doing well, but has no legal obligation to pay.

Non-cash payments. Any payment you accept that isn't monetary, eg, accommodation included with the job.

Benefits-in-kind. These are non-monetary parts of your benefits package, eg, medical insurance or a company car.
Do I apply for the furlough scheme myself?

No, if you're an employee, you don't apply for furlough yourself, your employer does it on your behalf.

If you're an employer furloughing staff, you can use this Gov.uk calculator to find who is eligible and how much to pay them (though you can only calculate using one employee/salary at a time, unless everyone is paid the same and was furloughed at the same time).

Employers can access the furlough scheme claim portal here. You will need your Government Gateway ID to log in – you should have received this when you registered for PAYE online.

Remember, you need to apply for furlough each month for any furloughed employees (it doesn't just roll over once you've applied the first time). So if you've got furloughed employees during May (who were furloughed in April), you'll need to apply specifically for that month too.
When will my employer have the furlough cash to be able to pay me?
The scheme first opened to employers on Monday 20 April, and while the first payments have now been paid, employers will have to apply each month they are claiming under the scheme.

If you've been paid by your employer as normal, this 'behind the scenes' transfer won't affect you, as it'll just be your employer claiming for salaries they've already paid out, or are about to pay out.

Yet a decent number of employers have struggled for cash flow, with some telling employees they can't afford to pay their wages until the grants come in.

If your employer had to wait for this cash to come through before paying you, it's likely there would have been a further delay once your employer has the furlough cash, as they'd have needed to run payroll to ensure you pay the right tax, national insurance and pension contributions on the 80% furlough wage.

As every company will be different, it's best to speak to your employer to find out when they'll actually make the furlough claim for you, and when you might expect to be paid. It should work out roughly like this though:

Your employer applies to make a claim for furlough (check who's eligible). They'll need your PAYE scheme reference number, national insurance number, payroll or employee number (optional) – as an employee, there's no need for you to do anything.

You will receive a notification from your employer once the claim has been made, so you know when to expect the money in case you're not being paid as normal.

Your employer should receive the grant within six working days, eg, if the claim was put through on Wednesday 22 April, your employer should have received the money by Thursday 30 April.

There might be a further delay due to payroll, to ensure you're paying the correct tax and pension contribution. If you're unsure when exactly you'll be paid, contact your employer.

When you receive your wage, any tax would already have been deducted. Whether you receive 80% or 100% depends on whether your employer has decided to top up the Government contribution.
Does annual leave still accrue during furlough?

Yes, annual leave still accrues as it normally would if you were doing your job.

But currently annual leave is a stumbling block for many employers as it's not covered under furlough. For some employers, this can mean the difference between keeping an employee on or making them redundant.

We've checked to see if employees can waive their right to annual leave – HMRC said the "employer and employee can agree to vary within the furlough agreement".

Yet we've checked with employment lawyers, and they say you're entitled to the equivalent of 28 days a year (20 days holiday + eight bank holidays), which CAN'T legally be waived.

But if you have extra annual leave allowance above this, you can agree to waive it – and it could be a good choice if it makes the difference between that and redundancy. Again, it's best to speak to your employer.
Can I come off furlough but then be re-furloughed?

The short answer is yes, you can be placed on furlough more than once.

If you've been placed on furlough by an employer, the guidance states you'll need to remain furloughed for a minimum of three weeks. Some employees may come off furlough after that period, but there is nothing stopping an employer re-furloughing that worker for a second time later down the line (provided the furlough scheme is still running).
I'm classed as a 'key worker' – can I be furloughed?

The Government has confirmed that key workers can be furloughed.
Can I be furloughed if my employer's gone in to administration?

Sadly, despite the Government's Job Retention Scheme, we are seeing some companies, both large and small, unable to continue trading.

If your employer goes in to administration, the administrator (the company now overseeing your employer's affairs) would be able to access the Job Retention Scheme – so long as you were on your employer's payroll on 19 March 2020.

However, the administrator would only be able to do this if there was a reasonable likelihood of the employee being re-employed by the company, for example, if the administrator thinks it can sell your employer's business as a "going concern".
What if I'm auto-enrolled into a pension?

If you're contributing to a pension via auto-enrolment and you've been furloughed, the furlough scheme is designed to cover the minimum, matching pension contributions made by your employer.

Furlough also covers the national insurance contributions made by your employer.

This will be on top of the 80% of your salary covered by the Government.
Can vulnerable people who've been told to self-isolate for 12 weeks be furloughed?

Employers CAN furlough those who can't work due to shielding in line with health guidance. There's much confusion over this. Employers have discretion to chose to furlough someone via the Coronavirus Job Retention Scheme, but some are wrongly turning down requests thinking they're not allowed.

Nothing in the guidance prevents furloughing in these cases, yet as employers are nervous, to help Martin tweeted the Chancellor for clarification, and got back an OFFICIAL statement via the Treasury:

"Employees on sick leave or self-isolating should get statutory sick pay, but can be furloughed after this. Employees who are shielding in line with public health guidance can be placed on furlough."
What if I'm on a fixed-term contract?

Those on fixed-term contracts can be furloughed, just like permanent members of staff can be.

However, furlough will only last as long as your fixed-term contract does (ie, you can't continue to be furloughed once your contract expires or ends).

If you are on a fixed-term contract and you've been furloughed, your employer is allowed to renew or extend your contract. However, your employer must do this WHILE your contract is still running, ie, it can't be extended once your contract has ended (so any renewal must come before the contract's natural conclusion).

Can I be rehired by an employer if my fixed-term contract's already ended?

The answer will be yes for some, no for others.

If your contract ended after 28 February 2020 and your old employer had submitted a Real Time Information (RTI) about you (ie, you were 'on the payroll') on or before 28 February, you CAN be rehired and furloughed. Similarly, if your contract ended after 19 March 2020 and your old employer had submitted an RTI about you on or before 19 March 2020, then you can also be rehired and furloughed.

However, you won't be able to be rehired and furloughed if your fixed-term contract ended before 28 February 2020, or if you started and ended the same contract between 28 February and 19 March 2020.
Can I be paid less than the minimum wage on furlough?

Yes. The national minimum wage or national living wage only applies when you are working or doing training that your employer requires you to do.

Furloughed workers who, by definition, aren't working can be furloughed at 80% of their normal wage, even if that takes their wages below the relevant minimum wage.
Can I be furloughed if I'm not a UK national?

Yes. The guidance says: "Foreign nationals are eligible to be furloughed. Grants under the scheme are not counted as 'access to public funds', and you can furlough employees on all categories of visa."

If your employer's told you you can't be furloughed because you're a foreign national, show them the relevant Government guidance.
If furloughed, can my employer pay me less than 80% of my wage?

If you've been furloughed by your employer, then it MUST pay you the FULL 80% of your wage up to the maximum of £2,500/month (if 80% of your salary is more than that) – it can't pay you any less. If it does, or it asks you to carry on working while being furloughed (though you can be asked to go for training), speak to your employer and politely remind it of the rules.

Failing this, you can anonymously report your employer to HMRC's fraud department online. However, it may simply be a case of your employer being unaware of the rules.
Does furlough affect my childcare entitlements?

No, being furloughed – or any other form of coronavirus-related disruption to your income – shouldn't affect your normal entitlement to childcare.

For those in England, all three and four year-olds get some free childcare, and for many working parents this can be worth up to 30 hours a week. Separately, parents of children up to 11 years old (17 if they've a disability) can also apply for tax-free childcare, worth up to £2,000 per child, per year.

Both are dependent on you (and your partner, if you have one) earning a minimum income equivalent to 16 hours a week at the national minimum wage. But new rules introduced by the Government mean if you're temporarily earning less because of coronavirus, but would normally earn enough to qualify, you'll still be able to get free childcare and tax-free childcare as normal.

For critical workers who are now earning above the maximum income threshold because they're working overtime due to coronavirus, they will also remain eligible for both schemes.

What if I live in Wales, Scotland or Northern Ireland?

The new measure also applies if you're applying for tax-free childcare and you're in Wales, Scotland or Northern Ireland.

However, free childcare is a devolved issue, and the number of hours of free childcare you can get varies depending on which country you live in. We're checking to see whether the Scottish, Welsh and Northern Irish governments have introduced similar coronavirus-related measures regarding free childcare.

For more information about childcare and what's on offer, see our Tax-Free Childcare guide.
Will my maternity pay be affected if I've been furloughed?

In simple terms, no. New rules which kicked on 25 April 2020 mean that if you're due to go on maternity leave, your rights to statutory maternity pay (SMP) or maternity allowance (MA) shouldn't be affected if your company is furloughing staff.

Eligibility for SMP or MA, and the amount you receive, is normally dependent on your average earnings, meaning employees furloughed at only 80% of their wage were initially at risk of being adversely affected.

However, new rules have been introduced, meaning that any qualifying employee going on maternity leave on or after 25 April 2020 (including if you're still working but have applied for maternity leave) will get their SMP or MA based on 100% of their salary rather than 80%, which would have been their furlough pay.

For SMP, this means you will still get 90% of your FULL pay for the first six weeks – and not 90% of 80% furloughed pay.

However, if you went on maternity leave before 25 April 2020 and you've been furloughed on less than 100% pay, this may affect how much maternity pay you receive.

Note: This only refers to your statutory entitlements. Some employers offer much more generous maternity benefits – if your employer if struggling and furloughing staff, speak to them to see how that might affect any enhanced maternity benefits they're offering.
I'm on maternity leave – does the 10 June 2020 furlough deadline apply?

The Wednesday 10 June deadline applies for all employees who have not previously been furloughed, and that includes if you're currently on maternity leave.

The technical cut-off for new furlough entrants is actually 30 June 2020, but as furlough works in three-week cycles, for practical purposes the LATEST point you can be placed on furlough is Wednesday 10 June.

This is especially important for those on maternity leave until after that date, but coming back before November 2020 (when the furlough scheme ends), where it is likely your firm will want to furlough you (eg, if all staff are furloughed). If this is you, then your employer needs to put you on furlough by Wednesday 10 June.

Note. We've asked HMRC whether an employer simply placing you on furlough by 10 June but not actually making a payment claim under the furlough scheme (eg if you're getting maternity allowance or SMP) for that period also counts as beating the 10 June deadline.

If you're placed on furlough whilst on maternity leave, this shouldn't have any impact on your entitlement to statutory maternity pay or maternity allowance. If your employer offers a more generous maternity package, this may be impacted if you're placed on furlough whilst on maternity leave.

If you're currently furloughed and planning on going on maternity leave in the future, new rules are in effect which mean you should get your normal entitlement to statutory maternity pay or maternity allowance. But again, if your employer offers a more generous maternity package and you're planning on going maternity leave, your entitlement may be impacted by being furloughed.

How furlough can work for dental nurses

Dental practices in the UK are either fully NHS, fully private or a mix of both. Fully NHS practices are currently receiving continued NHS funds (albeit reduced in some places) on the proviso that staff are paid at previous levels and are made available to volunteer for redeployment in other areas of the NHS, while fully private practices can apply to the furlough scheme to support staff wages.

But there is currently much confusion from owners and employees of mixed practices unsure of how NHS funding and the Coronavirus Job Retention Scheme (CJRS) are supposed to work together.

The chief dental officer published guidance which says: "Practices benefiting from continued NHS funding will not be eligible to seek any wider Government assistance to small businesses which could be duplicative."

However, the Treasury's own CJRS guidance can be seen to leave room for interpretation: "In a small number of cases, for example where organisations are not primarily funded by the Government, and whose staff cannot be redeployed to assist with the coronavirus response, the scheme may be appropriate for some staff."

This rather ambiguous statement is leaving both practice owners (usually dentists) and employees, including support staff and dental nurses, unclear about what their rights and obligations are. Many owners are choosing to furlough on the proportion of their private income only, and are concerned that unless their staff volunteer, their NHS funding is at risk. Dental nurses are reporting that they are being pressured to volunteer, take unpaid leave, and take reduced pay as a result.

But unless a dental nurse has agreed to a contract amendment, they should be getting paid by their employers, which can either be funded via the CJRS or the NHS.

Julia Furley, barrister and partner at JFH Law and a leading specialist in dental practice law, told MSE: "There is a crisis within the dental profession. Dental nurses should be paid in accordance with their contracts. If practices are not able to do this, then they either need to negotiate a contract amendment with their nurse, or alternatively agree that they should be furloughed under the CJRS. One way or another, nurses should be paid".

We have been chasing – and will continue to chase – clarity from the Treasury on how the CJRS should be used for dental nurses. We will of course update this guide as soon as we get it.

What help is there for dental nurses?

If you're an employer, Julia Furley, a specialist in dental practice law, believes that you may well be able to justify furloughing a higher number of staff than is proportionate to the private element of the business.

She says: "If the NHS payment does not cover staffing costs, then it could be argued that the claim is not a duplication. The purpose of the CJRS is to avoid unnecessary redundancies. It will be a matter of providing sufficient evidence to justify a claim. There may well be an element of reconciliation or audit under the CJRS. However, employers will presumably avoid allegations of misconduct or fraud if they are able to properly evidence the process they adopted, on the basis of the guidance as it was at the relevant time."

If you're a dental nurse, you could ask your employer to adopt best practice. Furley believes this is where employers have furloughed or retained staff on normal pay, and made it clear that staff are not expected to attend work for normal hours if they are not absolutely necessary to treat emergency patients. If changes are to be made, they are to be made in writing, and signed and agreed by both parties.

The above does not constitute legal advice, and individual nurses should seek separate advice if they are concerned about changes being made to their jobs without their consent.

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out

FAQs Privacy Policy Past Emails Unsubscribe

Lost your job due to coronavirus, or were in process of changing job? Old employers can rehire you to furlough you

Resigned but your new job fell through due to coronavirus? Or laid off by panicking firms before the Government announced its support package?

In either of these scenarios, you could be eligible for furlough, but only if your old employer agrees to take you back onto its payroll AND you were on its payroll by either 28 February or 19 March 2020. Being on the payroll means that you need to have been paid (or been about to be paid) at least once by the company by that date.

Martin pushed for the guidance to include people who had voluntarily left their job but then had their new job fall through – and it now does. It says: "If you made employees redundant, or they stopped working for you on or after 28 February 2020, you can re-employ them, put them on furlough and claim for their wages from the date on which you furloughed them".

An updated version of the guidance also adds a similar statement to reflect that the cut-off date was originally 28 February 2020 and was then changed to 19 March 2020. This says: "If you made employees redundant, or they stopped working for you on or after 19 March 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme from the date on which you furloughed them."

Remember, old firms don't have to rehire and furlough employees, but at least they can. Speak to your old employer anyway and ask it to help you.

If you're an employer, we'd urge you to do what you can – you're not playing fast and loose doing this, you're doing what's intended (see the relevant guidance here).

It's worth pointing out that this is aimed at helping those who find themselves out of work due to coronavirus – so if, for example, you were already in the process of being made redundant when coronavirus hit, or if you chose to leave your job and didn't have any intention of taking up a new one, you're unlikely to be able to be furloughed.

If you've been laid off since 28 February or 19 March 2020 and want to try to get furloughed by your old employer, then:

Get in touch with your old employer.
Explain the furlough process to them.
Show your employer HMRC's guidance on the furlough scheme.
Watch Martin's video on the furlough process.

Employer won't put you on furlough? New info sheet to help – including template for employers

The Coronavirus Job Retention Scheme (CJRS) makes employers gatekeepers to this crucial state support. It is up to them whether they furlough you. Sadly though, there are many employers who aren't helping and instead are putting staff on slashed hours, unpaid leave or making them redundant.

There are many reasons for this, but we suspect one, especially for small firms themselves under the cosh, is simply due to confusion or difficulty, so to help Martin's drafted an info sheet: 11 simple furloughing need-to-knows for employees and small firms.

The idea is to use it as a jump-off point for a discussion with your employer – give them a sheet too. Plus as furloughing sometimes involves both parties agreeing a contractual change, ACAS kindly sped up drafting its furloughing template letter for employers so we could include it. It's an easy legal way to furlough someone.

One of Martin's friends tried to get furloughed by their old employer, and was successful...

'I got my job back – it's good to feel part of something'

In March, a friend of Martin, 'Alex' (details changed), was devastated to be laid off from a hospitality job she'd started just a month before. When the furlough scheme was announced, Martin called her up, and suggested she ask the firm to take her back.

She thought there was no point, but Martin explained that the Government will pay 80% of her salary, and while the firm can – hopefully – top that up to 100%, it doesn't have to. So Martin suggested she just offer to receive 80% for now, and that she shows them the HMRC guidance to prove it.

It worked. Alex got her job back and, as well as the financial relief, she told Martin: "It's good to feel part of something again."

On furlough? Your employer CAN make you take annual leave – but you’re owed your full holiday pay for those days

We’ve heard from lots of MoneySavers whose employers have told them they need to take a certain amount of annual leave during furlough – with some unhappy that their leave entitlement will be reduced when they return to work.

According to the Government and employment body ACAS, your employer CAN require you to take annual leave while you’re furloughed.

Yet crucially it’ll need to give you notice, generally of at least twice the amount of time you’re being asked to take as leave. So if your employer says you need to take a week’s leave, it has to tell you at least two weeks before (unless your contract specifies a different notice period).

Your employer should also speak to you and explain why it needs you to take the leave, and should consider whether you’ll be able to use your leave for relaxation. If you won't, for example if you're caring for a vulnerable family member, or you're ill, then you should be able to challenge your employer. We've more information on what to do if your employer challenges back in the dropdown question below.

And vitally, both the Government and ACAS say that while you’re on annual leave you’ll need to be paid your FULL holiday pay. If your usual holiday pay would be worth more than your wage during furlough – for example, if you’re only receiving 80% of your usual salary while you’re furloughed – your employer will need to top up your wages so that you’re receiving your usual holiday pay for the period you’re on annual leave.

There’s full guidance on using annual leave while on furlough on the ACAS website - show this to your employer if it's not following the rules, plus see the help below.

My employer’s not following the rules – what can I do?

If your employer has asked you to take leave while you’re furloughed but hasn’t given you the correct notice, or hasn’t taken into account that you won’t be able to use the leave for relaxation, you should first gather your evidence and start a conversation with your manager.

Ruby Dinsmore, employment lawyer at Slater and Gordon, said: “If, as an employee, you are facing adverse situations during Covid-19, such as caring for a vulnerable family member or self-isolating and would not be able to benefit from the fundamental purpose of taking a break, then you would be within your rights to dispute a request to take holiday. You should however discuss this with your employer and provide them with reasonable proof that you are self-isolating, sick or that you are looking after a family member who is ill. If you also feel the request is unfair or has not been implemented in the correct way, for example by not receiving enough notice, raise your concerns with your manager and see if you can agree a way forward.

“If you feel uncomfortable approaching your manager or are struggling to come to an agreement, it is advised to speak with HR and if no agreement is reached, consider raising a formal complaint. When raising any issue with your employer it is important that you keep a record of the problems that you are facing in relation to the issue, whether in work or in your personal life, and provide proof where possible to your employer to support your claim.”

Gig worker, zero hours, freelance or agency? Check if you're eligible for furlough

If you work in the 'gig' economy – for example, you freelance, you work through an agency or are on a 'zero-hours' contract – it's important to check whether you're eligible to be furloughed.

Unsure? Just check how you're taxed. If you're taxed through PAYE, then you're considered as an employee, so you should have the same rights as an employee – read more about what those are above.

If you are taxed through PAYE, then one of your rights is that you're eligible for furlough (the Coronavirus Job Retention Scheme), where the Government will pay 80% of your salary up to £2,500/month. You'll need to discuss furlough with your employer, or the relevant agency or umbrella company where applicable. If you are put on furlough, you won't be able to do any work for them or on their behalf until the furlough ends.

The amount the Government will pay will be 80% of your usual pre-tax monthly salary, as it was on 28 February 2020 (if you earn fees, commission or bonuses on top of your usual salary, this won't be included).

If your pay varies from month to month – for example, because you're employed on a 'zero-hours' contract – the 80% will be calculated based on the higher of:

Your earnings in the same month of the previous year.
OR your average monthly earnings from the 2019/20 tax year.

If you've worked for your employer for less than a year, it'll be calculated based on your average monthly earnings while you've worked there.

If you are self-employed (therefore taxed through self-assessment and not PAYE), you won't be eligible to be furloughed, but you may be eligible for the support being offered to the self-employed, or be able to claim benefits.

For more info, see Martin's video below on zero-hours workers.

Embedded YouTube Video

Martin Lewis: 'Confirmed – supply teachers can be furloughed on 80% of their core salary'

In normal times, supply teachers working for agencies and umbrella companies in England and Wales (it doesn't work this way in Scotland or Northern Ireland) often have their pay structured as 'minimum wage plus discretionary bonuses'. This is done to allow continuity of employment, but different pay rates depending on the job that is being done.

However, this structure causes a problem under the furloughing rules. Discretionary bonuses are not included in furlough pay, so many umbrella agencies (not all – I've heard reports of some who simply aren't contacting staff, and some who have always paid the full amount) who are furloughing teachers are basing the 80% of salary when furloughing on just the minimum wage – meaning very low incomes.

Yet while it may be called a 'discretionary bonus' – if something looks like a duck, smells like a duck, and quacks, it's probably a duck. In this case, the bonus looks, smells (and, er, quacks) like a firm part of the agreed payment that supply teachers get and not something discretionary.

The NASUWT union and many teachers themselves also believe these are not bonuses in any true sense of the word, but a part of their regular pay. This is backed up by the chair of the Law Society's employment committee, who believes that umbrella companies' interpretation of the guidance is wrong.

For the last month, I've been in discussions with HMRC trying to see if there is a route through it. A couple of weeks back I published a quote here, and while there was some movement with one big firm, Orange Genie, which recently announced it would furlough on the entire amount, many firms didn't budge. We have pushed hard over the weeks for the guidance to be changed, and I'm delighted to say that's happened, with it virtually mirroring the sentiment of the quote.

The new Government guidance for employers

The guidance was amended last week – you can see it in situ on the Government's 'Work out 80% of your employees' wages' page. The key paragraphs are:

"When you're working out if a payment is non-discretionary, only include payments which you have a contractual obligation to pay and to which your employee had an enforceable right.

"When variable payments are specified in a contract and those payments are always made, then those payments may become non-discretionary. If that is the case, they should be included when calculating 80% of your employees wages."

This hopefully clears up the big issue for supply teachers in England and Wales. Now, we hope all firms will furlough at the right amounts.

Can the increase be backdated?

We've checked, and sadly past furlough pay can't currently be backdated (though HMRC tells us it's working on changing this). But as firms are currently applying for the money for May's payrolls, they are allowed to adjust the amount for that. And of course with the furlough scheme being extended to October, this is very important going forward.

How should supply teachers best use this information?

The agencies' nervousness will have come from the fact that while they can claim for the higher amount to be paid to furlough staff, it is later subject to an audit if it was done incorrectly, so they will want comfort that they're doing the right thing based on their salaries. The new guidance should hopefully give them the confidence to go ahead and furlough the higher amount. So it's worth asking them again in light of this (and having the guidance to hand).

But ultimately furloughing isn't compulsory, it's up to the firm. Yet even if we ignore the fact it's the right thing to do, rather than leaving employees with no income – there is an argument that treating supply teachers (ie, their product) well is, over the long run, good for business once we start to move back to normal. That's an argument teachers may want to politely use.

Note: The above applies to supply teachers in England and Wales.

In Scotland, supply teachers on temporary fixed-term assignments/contracts will suffer no detriment in regards to pay, whereas those on short-term assignments between 1 January 2020 to 31 March 2020 will have their pay based on an average over the three-month period.

In Northern Ireland, supply teachers are directly employed by the Department for Education, which has agreed to keep paying its substitute teachers separately to the CJRS.

You can get statutory sick pay from day one

If you need to take time off work due to becoming unwell from coronavirus, you'll be entitled to your usual sick leave and sick pay.

If you need to self-isolate but don't have symptoms, you may be able to continue working if you are one of the many employees working from home in line with Government guidance.

But if you're still expected to go into work – for example, if you're a key worker – you should be entitled to statutory sick pay if you're self-isolating on Government advice (as long as you would usually qualify for it).

Statutory sick pay currently stands at £95.85 a week – you must be employed and earn an average of at least £120 a week to be entitled to it (see full eligibility criteria).

Your employer may also offer sick pay which is worth more than the statutory amount, if this is outlined in your contract.

The Government has confirmed that statutory sick pay is now payable from day one, not day four. Here's what we know so far about the rule change:

It applies retrospectively from 13 March 2020. This means you can claim statutory sick pay from day one if you needed to self-isolate from 13 March 2020 onwards.
The extension in statutory sick pay relates to those self-isolating due to coronavirus, NOT for any other reason. If you are off sick for any other reason, standard rules apply and statutory sick pay will kick in from day four, not day one.
You must be self-isolating for an official reason. These are if you have coronavirus or if you or someone in your household has coronavirus symptoms, or if you've been told to self-isolate by a doctor or NHS 111.

Employers should also be flexible about requiring evidence for sick leave from employees, for example if you're unable to provide a doctor's note due to being in self-isolation.

If you're not unwell or in quarantine, but your employer asks you not to come to work, you should receive your full pay.

For full help on your employment rights during the coronavirus outbreak, see the ACAS website.

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out

FAQs Privacy Policy Past Emails Unsubscribe

Looking after children and your rights at work

Schools, nurseries and other childcare providers across the UK have now been closed for more than two months for most kids (though some are open to children of 'key workers' and the most vulnerable children). However, childminders in England are now able to reopen if they are caring for children from the same household, and it also looks like some children will be able to go back to school or nursery next Monday.

For many parents though, the issue of having to juggle childcare and work still remains. So here's what you need to know:

By law, employees have the right to take time off work to help someone who depends on them in an unexpected event. However, you DON'T have a legal right to be paid for this time, though some employers may offer paid time off in this situation depending on your contract or your workplace's policy.
There's no official limit on how much time you're allowed to take off. It just must be "reasonable" for the situation. The Government hasn't been able to confirm exactly how much time would be seen as reasonable to take off for school closures – for example, if schools stay shut for several months – but has told us it's keeping the situation under "active review".
Look at other options, including taking annual leave or unpaid parental leave. If you do need to spend a longer period away from work, you may also be able to book the time off as holiday, or take unpaid parental leave. Parental leave is available for employed parents who have been with their company for more than a year, and is usually limited to four weeks' leave per year, per child – though it could be extended at your employer's discretion. It's important to note that it's unpaid though.
See if flexible working can help. You also have the legal right to ask to work flexibly as long as you've worked for your employer for at least 26 weeks, and it must consider your request and deal with it "in a reasonable manner". This could include asking to change or reduce your hours so you can look after your children.

For all these options, speak to your employer to see what it can offer you – many companies have updated their policies for employees who are parents in light of the school closures.

If you have a question about coronavirus related to schools or other educational establishments, you can call the Department for Education's coronavirus hotline on 0800 046 8687, which is open 8am to 6pm, Monday to Friday, and 10am to 4pm on weekends. Alternatively, you can email the DfE.

Who counts as a key worker (and so can still send kids to school)?
While schools are shut for most children across the UK, they are still open for the children of 'key workers', and vulnerable children.

If you count as a key worker, you don't HAVE to keep sending your kids to school if you're able to make alternative arrangements for them to stay at home – and in fact, the Government says any child who can be safely cared for at home should be. But you can continue to send your child to school if you work in one of the following key sectors:

Health and social care. This includes doctors, nurses, midwives, paramedics, social workers, care workers, support and specialist staff within the health and social care sector, and staff working within medical supply chains.

Education and childcare. This includes teachers, nursery staff, social workers and specialist educational professionals.

Key public services. This includes key workers within the justice system, religious staff, charities and workers delivering important front-line services, those responsible for the management of the deceased, and journalists and broadcasters providing public service broadcasting.

Local and national government. This only includes staff working to deliver the coronavirus response or essential public services such as the payment of benefits.

Food and other necessary goods. This includes staff involved in the production, processing, distribution, sale or delivery of food or other important goods such as hygienic and veterinary medicines.

Public safety and national security. This includes police and support staff, Ministry of Defence civilians, contractors and armed forces personnel who are critical to the delivery of key defence and national security outputs and the coronavirus response, fire and rescue service workers (including support staff), National Crime Agency staff, and border security, prison and probation staff – as well as other national security roles.

Transport. This include staff keeping air, water, road and rail systems operating during the coronavirus response – including workers on transport systems facilitating supply chains.

Utilities, communication and financial services. This includes staff needed for essential financial services (such as those working in banks), staff in the oil, gas, electricity and water sectors, workers in the IT and data infrastructure sector and primary industry supplies to continue during the coronavirus response, key staff working in the civil, nuclear, chemicals, telecommunications (such as network operations, call centre staff, 999 and 111 services) and postal services, and in the delivery, payments provider and waste disposal sectors.

This isn't an exhaustive list, and if you think your job falls into one of these categories you should speak to your employer to confirm. Only one parent has to be a key worker in order for you to be able to send your child to school.

Schools are also remaining open for vulnerable children, which includes children supported by social care or with safeguarding or welfare needs, 'looked after' children, young carers, disabled children and those with education, health and care (EHC) plans.

If your school is closed anyway but you're a key worker, then contact your local authority, which can redirect you to another local school for your child to attend.
Is my nursery getting any financial support?

It's not just schools that have been closed. Most pre-school settings, including nurseries and childminders, have also been forced to shut, though childminders were told they could reopen to look after children from the same home from 13 May 2020.

Many nurseries decided to waive fees altogether for the period they remain shut, after the Government announced that nurseries will be given a business rates holiday and access the Coronavirus Job Retention Scheme. However, the Government has now done a U-turn on the latter.

On 17 April 2020, the Department for Education published that early years providers will only be able to furlough some staff. It had been thought nurseries could furlough all the staff needed. But the new guidance stated, in simple terms, that nurseries can only get furlough funds for the proportion of income that's not publicly funded.

As many already get (and continue to receive) funds from the state to cover three- to four-year-olds, this is a big late change, especially for those who'd already furloughed most of their staff, causing added pressure.

This less-than-expected support is likely to hit both staff and fees, and it could mean staff losing jobs, permanent closures and parents seeing fee hikes further down the line. Some in the industry fear up to one in 10 members of staff may lose jobs and providers may either shut or hike fees.

An Early Years Alliance spokesperson said that "while nurseries always want to avoid increasing fees where possible, it may well be that it is a choice between doing so or shutting their doors for good".
Can parents who are looking after children be furloughed?

Employers CAN furlough those who can't work due to looking after children. There's much confusion over this. Employers have discretion to chose to furlough someone via the Coronavirus Job Retention Scheme, but some are wrongly turning down requests thinking they're not allowed.

Nothing in the guidance prevents furloughing in these cases, yet as employers are nervous, to help Martin tweeted the Chancellor for clarification, and got back an OFFICIAL statement via the Treasury:

"Childcare: Yes, if because of coronavirus closing schools you are unable to work and at risk of redundancy, your employer can furlough you."

Other employee rights during lockdown

While it's not part of the furlough scheme, there are a few other things that you need to know about your rights as an employee that are relevant to lockdown. The first is around annual leave, and the other's about a tax break that's available if you need to work from home during the crisis...

You may be able to carry over unused annual leave by up to two years

Normally, businesses need to make sure that their employees take at least the statutory minimum 28 days of annual leave (made up of 20 discretionary days, and time equivalent to the eight UK bank holidays).

However, the Department for Business, Energy and Industrial Strategy released emergency legislation in March, temporarily allowing businesses to let employees take less than the statutory minimum number of days of leave this year. This is aimed at employers on the front line of coronavirus (like hospitals, supermarkets and pharmacies), to make sure they have enough staff working each day to keep providing the services the country most needs during this crisis.

The alternative would be the employer forcing its employees to take the leave they're owed because they're required to do so by law, potentially leaving them short-staffed at a crucial time.

Technically, the legislation allows all employers to let workers carry leave over into the following two years. However, just like the furlough scheme further up this guide, it doesn't force employers to do it. Your employer will decide whether it wants or needs to be more flexible with its leave policy. If you've not heard anything from your employer, ask it if it's planning to make any changes.

Working from home? You can claim tax back on additional home expenses

If your employer requires you to work at home, you can claim for increased costs due to working from home, eg, heating and electricity (one estimate suggests bills are up £30/week). Clearly, right now millions are required to work at home, so this applies.

In practice, apportioning the cost is tough, so instead you can claim a £6/week rate. You can make a claim in two ways:

Employers can pay you £6/week extra, free of tax. Yet right now, with many firms struggling, asking may be bad timing, so...
If not, you can claim tax relief on £6 of income per week, which for basic 20% taxpayers is £1.20/week (about £60/year), and higher 40% taxpayers £2.40/week (about £120/year). You can apply directly to HMRC for this tax relief – and as long as you're claiming relief on the equivalent of £6/week for the period you worked from home, you won't have to provide evidence of the extra spending.

Sounds complicated? Don't worry, there's full info on how to claim in Martin's 'Working from home due to coronavirus? Claim tax back on extra costs' blog.

New. You can now be reimbursed for home office equipment without being taxed on it

With huge swathes of the UK's workforce now working from home, many have had to kit themselves out with office equipment such as desks, chairs, keyboards and computer mice, which employers are then reimbursing. Usually, these reimbursements are treated as taxable benefits-in-kind, which means you need to pay both tax and national insurance (NI) on them. But newly-announced regulations mean that this reimbursement – so long as the home-working is solely down to coronavirus –now won't incur a tax charge.

It's already the case that an employer can buy home office equipment (which they'd own) for an employer to use, without getting charged tax. Yet a reimbursement for kit the employee has bought used to be subject to tax because it enables the employee to perform their duties, but isn't incurred while performing them. It's a techy point, but it does matter to HMRC.

The changes officially take effect from Thursday 11 June, but HMRC says it won't expect employers to collect tax and NI on any coronavirus-related home office expense reimbursements made from 16 March 2020 onwards. However, this is temporary, as it'll only affect reimbursements made up until the end of the 2020/21 tax year (5 April 2021). It also doesn't apply to workers who normally work from home.

You don't need to do anything, as it's down to your employer to sort out the tax on your payroll and expenses. However, if you are claiming expenses for reimbursement of home office kit, it's worth checking you've been paid the full amount, without tax and NI being taken off. If your employer hasn't done this, you can point them towards the relevant Government legislation.

If you are (or may be) made redundant, know your rights

Sadly, many have been laid off as a result of the ongoing coronavirus crisis. Unfortunately, it is likely to be difficult for many to find alternative employment while the shutdown conditions are still on.

If you are (or may be) made redundant, it's vital to know your rights and to get a survival plan in place.

This could include sorting your finances and making a debt audit, and making sure you're receiving all the help you're entitled to. Our Redundancy Help guide takes you through it step by step.

It's also worth using our Benefits Checker to see what you may be entitled to or read our Coronavirus universal credit & benefits guide.

Warning – watch out for coronavirus scams

Lowlife scammers are taking advantage of coronavirus to try to defraud people, especially the elderly and vulnerable.

Action Fraud has already identified thousands of reports of fraud relating to coronavirus since February, with victims' losses totalling more than £4.6 million. Many of these are online shopping scams where victims have tried to buy products such as protective face masks and hand sanitiser from fraudsters. There have also been over 4,400 reports of coronavirus-themed phishing emails designed to trick people into opening malicious attachments or revealing sensitive information.

A common tactic used by scammers is to send messages purporting to be from research groups linked with the Centres for Disease Control and Prevention in the US, or the World Health Organisation. Some claim to be able to provide a list of people infected with Covid-19, which links to a malicious website or asks the victim to make a payment in Bitcoin.

Other common phishing emails include those pretending to be from the Government, sending articles about the coronavirus outbreak with links to fake company websites, or sending details of investment schemes which encourage people to take advantage of the coronavirus downturn.

Received a suspicious email? The National Cyber Security Centre (part of GCHQ) has launched its new Suspicious Email Reporting Service to take phishing scams down – all you have to do is forward suspect emails to its report@phishing.gov.uk email address.

Tips to protect yourself against scams

Action Fraud says you can do the following to minimise your chances of being tricked:

Be vigilant for scam messages. This includes not clicking on any links or attachments if you receive a suspicious message, and not responding to any unsolicited messages or calls that ask for personal or financial details.
Take care when shopping online. You should always do your research if buying from a company or person you don't know and trust, and possibly ask a friend or family member for advice first. If you do go ahead with an online purchase, you should use a credit card if possible for extra protection (see our Section 75 guide).
Protect your devices from threats. This includes always installing the latest software and app updates to protect your devices from new threats.

Also see MSE Katie's 20+ coronavirus scams to watch out for blog for more of the known coronavirus-related scams out there and tips to protect yourself from fraudsters.

Have you been scammed?

If you've lost money to fraudsters, you should do the following:

Immediately end all communication with them.
Contact your bank to tell them you've been scammed, and cancel any recurring payments.
Report the scam to the police through the Action Fraud website. You can also call it on 0300 123 2040, but be aware it has a reduced phone service at the moment, so waiting times may be longer than usual.
If you want one-on-one help, you can contact Citizens Advice Scams Action by phone or online chat.

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out

FAQs Privacy Policy Past Emails Unsubscribe

Have your say

This is an open discussion and the comments do not represent the views of MSE. We want everyone to enjoy using our site but spam, bullying and offensive comments will not be tolerated. Posts may be deleted and repeat offenders blocked at our discretion. Please contact fbteam@moneysavingexpert.com if you wish to report any comments.