They Furlough staff because there is no work for them during this lockdown. As most businesses have had to shut up shop, there is no income stream.
Furlough is to stop companies having to close down all together, leaving staff without a job.
By furloughing staff, companies are removed from the monetary pressure of paying staff wages.
If you are finished because your company has decided to close down, you would be faced with living on benefits. Furlough pays out far more than benefits and is much quicker at putting the money in your pocket, than you trying to claim benefits, as it is done through the payroll
By Furloughing staff, it is hoped that lots of companies will survive, and their staff will have jobs to go back to.
If we let all companies that didn’t have work now, but would in the future, go to the wall, millions would be on benefit and the economy would take years to recover.
By helping companies stay in existence to operate another day. it will go some way in helping the economy recover in the future. Their company’s operations are just being put on hold for now but may able to get back operational, with the same workforce in the future.
We don’t want companies going under and millions on benefits.
By paying furlough, companies will be better able to weather the storm, pay staff and retain them for when they get back in operation.
How does Furlough work for me:
1. If you earn £3500.00 (three thousand five hundred) or £35000.00 (thirty-five thousand) gross per month, you will be paid £2500.00 (two thousand five hundred) gross as that is the maximum anybody can receive.
2. If you earn £2000.00 (two thousand) gross per month you will be paid 80% of that which is £1600.00 (one thousand six hundred)
3. If you earn £500.00 (five hundred) gross per month you will be paid 80% of that which is £400.00 (four hundred) gross.
All will be paid in the usual way-through your wages.
There will be the usual deduction of Tax and NI
Furlough is no guarantee businesses will survive their closure. As soon as that business decides enough is enough, those furloughed will be off it and on benefits.