State support and coronavirus - a trade union guide (June 2020)

Chapter 1

What is the Coronavirus Job Retention Scheme (CVJRS)?

[ch 1: page 8]

In recognition of the impact of these restrictions, and following discussions with the trade unions, the government put in place a financial support package for businesses and workers and their families. This includes a “furlough” scheme initially providing businesses with 80% of the wages of employees who are temporarily laid off due to the crisis in order to avoid millions of job losses. By the end of May, figures released by HMRC showed 8.7 million jobs had been temporarily laid off by 1.1 million companies, with claims totalling around £17.5 billion.

The coronavirus job retention scheme (CVJRS) (see https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme) allows employers who cannot maintain their current workforce because their operations have been severely affected by coronavirus (COVID-19), to furlough – temporarily lay off – employees.

The rules of the scheme, which has been extended and now runs from 1 March to 31 October 2020, provide for different levels of support for employers over time. But throughout, employees must receive at least 80% of their usual monthly wages up to £2,500 per month.

Unlike the other benefits covered in this booklet, applications for payments under the job retention scheme must be made by employers rather than individuals. However, it is important that unions are aware of the rules so that they understand the options available and can influence their employers’ decisions.


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