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Cornavirus - Extension of Furlough

On 30th October, just as employers prepared for the change over from furlough under the Coronavirus Job Retention Scheme to the new Job Support Scheme the Government threw a life line and announced that furlough would be extended into December 2020.  At the start of November we were then advised that furlough would be extended until 31st March 2021. 
 
What this means, in short,  is that the UK Government will continue to contribute  80% (to a maximum of £2500 ) to wages for employee’s unworked hours with employers remaining liable to NIC’s and employer pension contributions.
 
Easy Guide

  • For hours not worked by employees the UK Government will, as before, contribute  80% of wages (to a maximum of £2500).
  • Employers will be responsible for NIC and pension contributions
  • To be eligible the employee must  have been employed by their employer  on 30th October 2020
  • Neither the employer or employee need to have used the furlough scheme before
  • The scheme can be used flexibly as per the arrangements since July 2020
  • Any employees who were made redundant on  or after 23rd September 2020 can be re-employed and claimed for under the new scheme
  • Employees who have previously been furloughed continue to have their reference pay and hours based on the same calculations as under the old scheme but any employees who have not previously been furloughed will have a different reference period – details of which will be published by the Govement this month.

For advice on this continuing furlough scheme, advice on achieving redundancies or steps short of redundancy without fear of a tribunal, or any other aspect of employment law please contact Steve McLaren or Sally McCartney.


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