COVID-19 Furlough Scheme – Further Updates Announced

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Following the latest announcement made by Rishi Sunak on Friday 29th May, several updates have been provided regarding the Coronavirus Job Retention Scheme (CJRS), which will see a number of changes come into effect from 1st August 2020.

 

What is the deadline for furloughing an employee?

The new deadline for enrolling employees onto the furlough scheme is now set as 10th June 2020. Whilst the scheme will continue to provide support for those who are temporarily unable to work, employers will not be able furlough or re-furlough an employee after this date.

  

Will the furlough scheme support an employee’s return to work on a part-time basis?  

Yes, the latest changes outlined will now make it possible for employees to return to work on a part-time basis whilst still being able to receive support from the scheme, and this will be allowed from July (instead of August, as previously announced). Employers will be required to pay 100% of an employee’s wage for the hours worked should this be the case.

 

How will I be expected to contribute towards the scheme, and when?

Whilst the Government have previously announced that, at some stage, employers will be required to contribute towards the support of their furloughed employees, the specificities around this have remained largely speculative up until this point.

On Friday, Rishi Sunak announced that the furlough scheme will continue to provide support for 80% of an employee’s wage (up to £2,500 monthly), as well as full coverage of National Insurance contributions, until August.

From August, employers will be required to pay National Insurance contributions and pension contributions, whether their employee remains on the furlough scheme full-time or has by that point returned to work on a part-time basis.

From September, the Government will be reducing its support from 80% to cover 70% of an employee’s wage, with employers then required to pay 10% of the employee’s wage. This figure is set to increase to see 20% of wage contributions covered by the employer in October.

 

When is the furlough scheme set to end?

In his announcement on 29th May, Rishi Sunak made it clear that the Coronavirus Job Retention Scheme (furloughing) will not be extended beyond the end of October 2020.

Need further advice regarding the furlough scheme? Unsure about your options? Talk to a member of our dedicated HR and Employment Law team today on 01292 433241 and we can provide tailored advice on the best moves to make for your business.

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