Flexible furlough zero-hour contract: Five things you need to know | Roamingdesk.com

The government has announced a new package of measures to support businesses and employees during the coronavirus pandemic. One of the measures is the introduction of a new flexible furlough scheme, which will allow employers to bring employees back part-time from 1 July 2020. the scheme, employees will only get paid for their hours, with the government continuing to cover a proportion of their wages for hours not worked, up to a minimum of £2,500 per month. The following are five fundamental things you want to realize about the new adaptable vacation plot: 1. The scheme will run until 31 October 2020. 2. Employers can claim for any employee who was on their payroll on or before 30 June 2020. 3. Employees do not have to have been layoff to be eligible for the scheme. 4. Employers can claim employees who are working reduced hours and those who are not working. 5. The government will continue continuously to pay 80% of an employee’s wages for many hours not worked, up to a maximum of £2,500 for one month.

  1. Can I furlough zero-hours workers?

Yes, you can furlough zero-hours workers! The government has confirmed that businesses can claim 80% of an employee’s regular pay for hours not worked or leave, up to a maximum of £2,550 per month.


Eligibility criteria for the scheme, employees must be on your PAYE payroll before 19 March 2020, and they must have been notified to HMRC through an RTI submission on or before 19 March 2020.


If you decide to furlough zero-hour workers, you will need to agree on this with them in writing and keep a record of this agreement. You should also note that you may need to top up their pay to ensure they receive at least the National Minimum Wage for their working hours.

  1. Can I furlough my zero-hours worker if they do not have another job?

If you are considering furloughing a zero-hours worker who has another job, you need to consider a few essential things.


Firstly, the government’s guidance on furlough states that employees can get it if they otherwise face redundancy. Therefore, if your zero-hours worker is still by their other employer and is not at risk of redundancy, they cannot be furloughed.


Secondly, even if the employee is at risk of redundancy from their other job, they may not be eligible for leave if they can continue working for you on a reduced-hours basis. The guidance states that employees can only leave if they “cannot work because there is insufficient demand for [your] products or services.”


Therefore, if you can offer your zero-hours worker reduced hours and they are willing to work those hours, they cannot be furloughed.


Finally, even if an employee is eligible for leave, there are restrictions on how much they can claim. The government will only reimburse 80% of an employee’s wages up to a maximum of £2,500 per month. So if your zero-hours worker typically earns more than this from their other job, you will not be able to claim the total amount from the government.


In summary, before you can furlough a zero-hours worker who has another job, you need to

  1. Do I need to get a zero-hours worker’s permission to furlough them?

If you want to furlough someone on a zero-hours contract, you’ll need their permission first. Then, you should discuss the arrangements with them in advance and agree on the layoff terms. It includes coordinating how much notice you’ll give them of changes to their working hours and what pay they’ll receive during the furlough period.


It’s important to remember that even though someone is on a zero-hours contract, they’re still entitled to fundamental employment rights. It means you can’t change their contract without their agreement.

  1. Some of my zero-hours laborers carry out training and volunteer work while on leave. Is this okay?

Yes, this is perfectly fine. It’s encouraged! Many employees find they can use their newfound free time to learn new skills or take on new volunteering opportunities. Not only does this help them stay productive and engaged during their leave, but it also helps them build up their experience and expand their professional network.

5.All eligible workers or job holders are entitled to 80% of the wage as part of their Coronavirus Job Retention Scheme (JRS). How could that be determined for zero-hours laborers?

6. All eligible job holders are entitled to 80% of the wage as part of their Coronavirus Job Retention Scheme (JRS). How could that be determined for zero-hours laborers?


The government has said that all eligible workers are entitled to 80% of their wage as part of the Coronavirus Job Retention Scheme (JRS). However, it is unclear how we determine zero-hours laborers.


A representative for the Office for Business, Energy and Modern Technique (BEIS) said: “The government is ensuring that all employees can access the support they need during this challenging time. We are working with stakeholders to understand the challenges faced by those on zero-hours contracts and will set out for further details in due course.”


We often have Zero-hours contracts in sectors such as hospitality and retail, where businesses need to be able to respond more quickly to changes in demand. Under these contracts, workers are not guaranteed minimum hours and can work at short notice.


While zero-hours contracts can offer flexibility for both employers and employees, there have been concerns about their use, with some workers feeling insecure about their income and hours.

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