What is a furloughed worker?
Definition of furloughed worker
Furloughed worker is the term used by HMRC to describe employees who are kept on an employer’s payroll through the Coronavirus Job Retention Scheme.
Using the Coronavirus Job Retention Scheme, employers can claim a grant to cover a percentage of an employee's wages. This is designed to allow employers to retain employees who they may otherwise have been forced to lay off during the coronavirus (Covid-19) pandemic.
Employers may choose to pay their employees the difference between the funding from HMRC and their salary. However, employers are not obliged to do this. HMRC has said that “if your salary is reduced as a result of these changes, you may be eligible for support through the welfare system, including Universal Credit”.
Furloughed workers remain employed but should not undertake work for their employer while being paid through the scheme. However, they are still permitted to undertake work for a different employer.
Check out our furlough calculator to work out how much you can claim from HMRC's Coronavirus Job Retention Scheme.