What is furlough?
When someone is furloughed by their company, their employer has asked them to take an unpaid leave of absence.
That means they will still technically be employed but won’t work or get paid.
The Chancellor’s plans will see the Government pay 80 percent of furloughed workers with salaries up to £2,500 a month.
It will be up to the companies to decide whether to pay the remaining 20 percent of the wages.
READ MORE: Self-employed benefits coronavirus: Are they enough to help?
In order to claim, employees must be furloughed by their company. Employers will notify their staff of the change to furlough.
Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation.
Businesses then send information to HMRC about the workers that have been furloughed and their earnings.
To claim, employers will need their ePAYE reference number, the number of employees being furloughed, the claim period (start and end date), the amount claimed (per the minimum length of furloughing of three weeks), their bank account number and sort code, and contact name.