The term furlough refers to an employee who has had to take a leave of absence from their job, due to economic conditions affecting their employer. The UK Government recently announced plans to help companies severely affected by COVID-19, under the Job Retention Scheme. Some companies can furlough employees but still pay them a wage through the financial assistance offered by the Government. This provides employers with another option when reviewing the circumstances of their business.
The Government are covering 80% of salary costs up to £2500 per month for employers who use the scheme, and some employers will make up the remaining 20% so that furloughed workers still receive full pay.