Government Financial Support for Individuals - General Discussion

[Bantamzen]

So how does a company furlough its staff if they can't (yet) claim the grant and they don't have the reserves to pay their staff...?

I don't expect you to answer that, just a general question

Well from what people already furloughed with employers unable to pay them tell me, they don't get paid.

 

[ainsworth74]

So how does a company furlough its staff if they can't (yet) claim the grant and they don't have the reserves to pay their staff...?

I believe the Government has been considering that a cash flow issue so has been directing companies to apply for the loan scheme or I guess they don't pay them (though the legality of that is dubious particularly if the employer is proposing to never pay them for that period!).

 

[Bletchleyite]

In practice they will probably have to send them home with the promise that the back pay will be paid when the money is sent to them.

It's an exceptional situation.

 

[Bantamzen]

In practice they will probably have to send them home with the promise that the back pay will be paid when the money is sent to them.

It's an exceptional situation.

That's exactly what is happening. Lots of people at home, still contracted to their employers but not knowing when they will get paid. The latest word is that the system will com online next week, and initial payments are expected to take 1-2 weeks to process & release the grants. Whether that actually happens remains to be seen.

 

[thejuggler]

They are going to have to open the barber/hairdressers within a month or max two!

So how does a company furlough its staff if they can't (yet) claim the grant and they don't have the reserves to pay their staff...?

I don't expect you to answer that, just a general question

There are limited choices.

Borrow the money, however despite lots of nice words banks simply aren't lending as Government aren't underwriting at the level they said they would so its not easy.

Employees agree to deferment of their salary until the furlough payment is received from HMRC.

Nuclear option is to wind the company up.

 

[Islineclear3_1]

Employees agree to deferment of their salary until the furlough payment is received from HMRC.

To their employer

 

[Islineclear3_1]

Nuclear option is to wind the company up.

That would really be drastic action requiring the company to pay redundancy

 

[Iskra]

Until the pandemic is over and it's payback time. Taking a mortgage holiday isn't free; the banks will charge you more interest for the privilege, which is fine if you can overpay; otherwise the money/interest owed will be tacked on to the end of the mortgage term

But, it's better than losing your home now...