[updated] 10 things you need to know about furloughing hair salon staff

Are you thinking about furloughing hair salon staff or have you done so already? As hair salons and barbershops have been forced to shut due to the coronavirus, many businesses have considered furloughing both full-time and part-time employed hair stylists and barbers. However, there are a number of points to consider if you’re doing this. On Friday 17 April 2020, the UK Government announced that employers and employees can continue to take advantage of the furloughing scheme until the end of June 2020. The National Hair & Beauty Federation (NHBF) has answered the common questions from hair salon and barbershop owners on furloughing members of staff.

1. What does “furlough” actually mean?

Being furloughed means employees are kept on the payroll even though they aren't working in your hair salon or barbershop. The minimum time employees can be furloughed for is three weeks.

2. How does furloughing help my hair salon or barbershop business?

If you furlough your employees the government will pay you 80% of their usual monthly wages before tax as of 28 February, up to a maximum of £2,500 per person per month.  The government will also pay for employer’s National Insurance Contributions and the minimum employer pension contributions.

3. How do I apply for the Government’s furlough scheme?

Through HMRC and the online portal is now open.

4. Who can be furloughed in my hair salon or barbershop business?

All employees, whether they work full-time, part-time or if their hours vary, but they must have been on your payroll on or before 19 March 2020.

5. How do I furlough my employees?

If you’re an NHBF member, you will have access to ready-to-use legal letters for your employees. These explain what furlough means and what happens next. If you’re not an NHBF member then you should take legal advice about furloughing.

6. What can my employees do while on furlough?

While they are on furlough, employees can’t earn money for your business and they can’t provide services to your business. If they do either of these, you will have to pay them for the time they are working for you.

7. What happens to employees’ holiday allowance during furlough?

Employees can’t be on holiday while they are furloughed. You must cancel any holidays employees have booked during furlough and they can take those days back another time when your business has re-opened.

8. What happens with bank holidays?

If your employees ​normally take bank holidays out of their holiday allowance, you must cancel these days and put the days back into their annual leave pot. If your employees would normally have been working on a bank holiday, these two days will ​remain in their holiday allowance.

9. Do holidays build up while employees are furloughed?

Yes. When they return to work they will be entitled to the holiday they built up while they were furloughed.

10. What if everyone wants to take holidays at the same time?

The Government has said that up to four weeks of holidays from this year can be spread over the next two years. Find out the financial support available for your hair salon or barbershop, or if you’re freelance, read HJ's financial guide for freelance hairdressers during the coronavirus.