UK FAQs: Furloughing and Administration – Key Considerations for Administrators

The Coronavirus Job Retention Scheme (JRS) was announced on 20 March 2020, and went “live” on 20 April 2020.

Although the government has published various drafts of online guidance, the latest of which was published on 1 May 2020 (Guidance), we have not yet seen any legislation on this scheme. In addition, there are no details about how the scheme is intended to operate in line with current insolvency legislation.

The purpose of this alert is to assist administrators in (a) making the decision to furlough employees; (b) dealing with employees who have already been furloughed; and (c) understanding their responsibilities and obligations.

This alert is not intended to be legal advice, and the approach taken to furloughing should be considered on a case-by-case basis, taking appropriate advice as required.