Furlough extension news
With the announcement that the Coronavirus Job Retention Scheme (CJRS) has been extended to 31 March 2021, what does this mean for businesses and is it the same scheme as before?
This is effectively a new scheme so if an employer hasn’t used the furlough scheme before they can use it and employers can also furlough employees who started between 20 March and 30 October 2020. Employees who had recently been made redundant can be re-employed and furloughed if they left employment since 23 September 2020.
The Government contribution will be 80% of salary capped at £2,500 per month although there is mention of a review in January 2021 to see if an improving economy can allow for an increased contribution by the employer. The employer will need to pay the national insurance contributions and pension contributions. Any reduction in an employee’s salary is subject to existing employment law.
Full guidance on the scheme is due on 10th November so watch out for further announcements. Claims can be made from 8am on 11 November and claims for a particular month must be made by the 14th day of the following month.
The Job Retention Bonus Scheme which was going to be paid to employers who don’t make redundancies has now been put on hold.
Once again it is important to make sure you are fully compliant with the scheme and if you have any questions get in touch asap.