Extension to the furlough scheme

On 12 May, Rishi Shunak announced that the Government’s Coronavirus Job Retention Scheme, which was due to expire on 30 June 2020, has now been extended to 31 October 2020.

It has been confirmed that there will be no changes to the system, whereby the government pays 80% of furloughed workers’ wages up to £2,500 per month until 31 July 2020. From 1 August 2020 the scheme will continue for all sectors and regions, but with greater flexibility meaning furloughed workers will be able to return to work on a part-time basis. Under the current scheme furloughed employees cannot work.

The Chancellor has also confirmed from 1 August 2020, employers would need to share with the government the cost of paying salaries, in an indication that the level of government support will begin to taper away. There was no outline given of how the government support would be wound down but it was said that there was an expectation that employers would share the burden of paying 80% of furloughed workers’ wages, meaning staff would not have their incomes cut. More specific details and information around its implementation and what is expected of employers will be made available by the end of May.

 

18 May 2020

Catherine Wilson

Catherine specilaises in all aspects of employment law, with a particular emphasis on discrimination, whistleblowing, redundancies and senior executive severances. Catherine is head of employment at Keebles LLP.

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