In these unprecedented economic times, there is much for an employer to consider around salary sacrifice pensions when managing furloughed employees during the COVID-19 lockdown restrictions. This article by Busy Bees Benefits aims to provide some clarity for business owners on what they must consider.
It is important to remember that a salary sacrifice arrangement is a contractual agreement between the employee and their employer, where the employee agrees to give up some of their salary in return for a benefit, such as a pension contribution by the employer. A salary sacrifice arrangement is usually, by mutual agreement, set up by changing the terms of the worker’s contract of employment.
You must consider reviewing the documentation that confirms the salary sacrifice agreements, how you communicate the processes with furloughed employees and evaluating the financial support available.
Learn more about pension salary sacrifice considerations for furloughed employees.