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:
- Employers can claim even if they, or the relevant employees, had not previously used the Job Retention furlough scheme.
- The Job Support Scheme and Job Retention Bonus are on hold.
- Flexible furlough remains an option. So employees can continue to do some work.
- 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.
- Employers will still be asked to cover National Insurance and employer pension contributions for the furlough period.
- 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.
- 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.