Due to the continued impact of coronavirus on businesses across the country the government have extended the Job Retention Scheme (JRS) or “furlough scheme” until 31st March 2021. This applies to businesses across the UK, whether they are open or closed.

The new Job Support Scheme which was due to begin on 1st November 2020 has now been postponed and is replaced by the furlough scheme extension.

Key points:

• Employers can claim for employees who were on payroll on 30th October 2020

• Employees can be furloughed on a full-time or part-time basis, ie employees can work part-time (paid by employer as normal) and be furloughed for the remainder

• Employees will received 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month

• Employees do not previously need to have been furloughed

• Employers will have to cover the cost of Employer National Insurance and Employer Pension Contributions

• There is no minimum furlough period

• Employers must confirm to their employees in writing that they have been furloughed or flexibly furloughed

To avoid information overload we have only included the key highlights above however further details on more specific elements of the scheme and its administration can be found here: https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

As always we recommend discussing any furlough plans in advance with us to ensure eligibility, compliance and administration are in order and that costs have been considered.

Should you require any further information please don’t hesitate to get in touch.