Reply to post: Re: What is this furloughing?

Dixons Carphone top brass take 20% pay cut as swathes of Brit workforce furloughed

Cereberus

Re: What is this furloughing?

After the useful comment from the ever so friendly AC furloughing generally is unpaid leave, whilst still remaining technically employed by a company, and not doing any work for that company.

In this case it is a little different as if an employee is furloughed they are not allowed to do any work, and will receive 80% of their normal annual pay (not including extras like overtime as far as I know) which the employer claims back from the government - this payment being restricted to a maximum of £2,500 per month.

The idea is that when the lock down is lifted and businesses can get back to work they have the staff still in place and in the meantime haven't gone bust due to the cost of wages, operating cost (to a greater or lesser extent) etc.

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