The latest on the Government’s Furlough scheme

Category: Employment

Like us, you’re probably struggling to keep up. First, we had the Coronavirus Retention Scheme (what I now like to call the original furlough scheme). Then we had part furlough. And finally, we had to get our heads around the Job Support Scheme Open (and that third of a third!). And then the Job Support Scheme Closed.

The latest announcement

But now, following the Government’s announcement on 31 October 2020, we’re going back to the beginning. The original furlough scheme will be extended until December 2020 (with no gap in government support). ‘Until December’ does seem vague. However, its likely that it’s intentional in case the second lockdown (starting on Thursday 5 November until 2 December) is extended.

What does this mean in practical terms?

Employees will continue to receive 80% of their salary for hours not worked, up to a maximum of £2,500. Employers continue to have the option of furloughing staff full-time or on a part-time basis. Eligible employees are those that were on your payroll on 30 October 2020. This will be very good news for staff who weren’t eligible under the old scheme, and may not have been under the new Job Support Schemes).

You may remember that employers’ contributions gradually increased over the last few months. However, with the extended furlough scheme, employers are only required to cover National Insurance and pension contributions).

For now, this means that the Job Support Open and Closed Schemes have been delayed.

Do you need furlough agreements for your staff?

The furlough scheme announcement is a welcome relief to businesses as we enter the second phase of lockdown. This will, undoubtedly be, a hard winter. We’re finishing off our updated furlough agreements so, as always, if you need any assistance, please do contact us.

Employment

Contact us

You can reach our Employment team by calling 01752 827081 or by emailing [email protected]. The team are working through lockdown and, as a result, are available to help with furlough and all other employment related queries.