If you are an employer and you are still not sure whether you can put zero hours workers on furlough, well the answer is yes you can. So let`s look at some of the details of furloughing an employee who is on a zero hours contract.
Zero Hours Workers On PAYE
You can furlough them if their work has been severely affected by the coronavirus outbreak, which is in effect most workers, if they are on Pay As You Earn (PAYE), and if you started to employ them before February 28th 2020.
You should always try to get a zero hours employee`s agreement and permission when you furlough them. You should discuss all the details with them to ensure they understand the situation, reassure them that furloughing is only a temporary measure and put the decision down in writing for them to make it official.
The Coronavirus Job Retention Scheme
As part of the Coronavirus Job Retention Scheme employees are entitled to 80% of their wage whilst on furlough. With a zero hour employee they are entitled to 80% of what they earned in the same month from a previous year, or their average monthly pay throughout the 2019/2020 tax period, whichever of these is the greater.
It is very important that you are upfront with all your employees, whether they are on zero hours contracts or not. Ensure they are fully aware of what they can expect to receive whilst on furlough and also keep them updated on a regular basis whenever you have any news regarding their work situation. They will certainly respect your honesty.
Expert Guidance For Businesses
There are so many aspects of your business to manage whilst we are in the midst of the Covid-19 pandemic which is why most businesses need all the help they can get. If you are looking for an accountancy firm who will be able to help guide you through this exceptionally rough period for the business community then get in touch with the experts here at WHR Accountants in Armagh, Northern Ireland. Please email us or give our offices a call on 028 3752 2909.