Confusion mounts over wages scheme

The British Government will pay the wages of employees unable to work due to the coronavirus pandemic, in a move aimed at protecting people’s jobs.

It will pay 80 per-cent of salary for staff who are kept on by their employer, covering wages of up to £2,500 a month.

It is believed that this amount is based on your gross income, and it is up to the employer to apply for the grant.

If your employer intends to access the Coronavirus Job Retention Scheme, they will discuss with you becoming classified as a furloughed worker.

This would mean that you are kept on your employer’s payroll, rather than being laid off.

Micheal Roddy of Omagh Independent Advice Service said the  scheme has been causing some confusion for both employers and employees.

“The guidelines say 80 per-cent of your wage for all employment costs so I assume that is taking in taxes and contributions so I am assuming it is based on your gross pay.

“We have been dealing with a lot of enquiries in the last few days from people whose employers do not know what to do about it and others whose employers are refusing to participate in it.

“A lot of employers think that it is down to the employees to claim for something, but that is not the case. The employer applies for this.”

One of the issues that has arisen is the working from home scenario, where workers can work from home, but other factors such as the school closures is preventing parents from doing this.

If this is the case, Mr Roddy says employees can ask their employers to become a furloughed worker.

“If a parent is now working from home with children running around, these people may not be able to continue to work from home since the school closures.

“The guidance we have on this is if you are forced to give up work because of coronavirus – which  would clearly include childcare  issues and the school closures – you can asked your employer to furlough you, and they can apply for the government grant of up to 80 per-cent.”

However Mr Roddy says this new scheme is extremely positive, and he hopes a similar scheme will be introduced for self employed people.

“The mood of people has changed. Last week, we had people who were distraught and anxious who did not know what this was going to mean for them and their financial commitments such as mortgages.

“So this scheme is welcome relief for all of these people.”

• For further information, visit: https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-guidance-for-employees