A while ago we wrote about the Furlough Scheme, here’s an update from Sue, our HR/Employment Lawyer

The furlough scheme will be extended to 31 March 2021.  Up to 80% (approximately) of salary will be paid, up to a maximum of £2,500 per month for the period to 31 January 2021.  The percentage may well decrease in February and March – as was the case in September and October.
Full guidance on the furlough pay calculation and other terms will be issued on 10 November but the main points to note are:

  1. Employers can claim even if they, or the relevant employees, had not previously used the Job Retention furlough scheme.
  2. The Job Support Scheme and Job Retention Bonus are on hold.
  3. Flexible furlough remains an option. So employees can continue to do some work.
  4. The extension will come too late for many employees but those on the payroll on 23 September 2020 made redundant after that date, can be re-employed and put on furlough – if the employer agrees to do so.
  5. Employers will still be asked to cover National Insurance and employer pension contributions for the furlough period.
  6. Employees can be furloughed if they are shielding (or need to stay at home with someone who is shielding) – but the decision to do so lies with the employer.
  7. A written agreement needs to be put in place for furloughed employees – let us know if you need one.

Please do get in touch if you’d like further guidance.  You can book a 15 minute Law Chat here for free using the code LawChat15.