COVID-19 Furlough Scheme Extended Until October

In this COVID-19 Employment Law Update, Employment & Dispute Resolution Solicitor and Head of our Penistone branch, Robert Bates, discusses the furlough scheme being extended for four months until October 2020.

The Chancellor Rishi Sunak has today announced that the Coronavirus Job Retention Scheme (known as the CJRS or the furlough scheme) will continue for a further 4 months until the end of October 2020. The Scheme will remain in its current form until the end of July and the Government will ask employers to “start sharing” the cost from August.

The Scheme was due to end in June. With approximately 7.5 million workers – which is over a quarter of all workers in the UK – currently on furlough, today’s announcement from the Chancellor was eagerly anticipated. Following the news there is sense of “relief” on all sides, with the Chamber of Commerce saying it would bring “significant relief” to employers and workers and the TUC saying the extension “will be a big relief for millions”.

Further details will be provided in May but it is clear for now that furloughed employees will continue to receive 80% of their monthly wages (capped at £2,500) up to the end of July paid for by the taxpayer. In order to transition people back to work the Government is going to require employers to “start sharing” the cost of the Scheme in August, September and October. From August it will also be possible for staff to work part-time, something which is not currently permitted under the Scheme. Further details are expected later this month.

The extension of the Scheme has bought employers time and breathing room. While there will be no cliff edge it is clear that the Scheme – which is costing the taxpayer tens of billions of pounds – will be wound down while we are still battling the economic crisis caused by COVID-19. Sensible employers will not be leaving it until the last minute to prepare, review their business structures and seek expert support where necessary. Find out how Jordans HR can help by clicking here.

In these challenges times, what is clear is the importance of employers having access to specialist legal support. We developed our fixed fee service, Jordans HR, to help employers and give them certainty on costs. Whether you have no HR resources or a HR Manager in need of support, we can help with everything from day-to-day staff issues to complex disputes.

 

Jordans Solicitors – here to support your business

In this period of ongoing uncertainty, our Employment department is ready to offer support for both employers and employees.

Whether it’s regarding the CJRS, furloughing, redundancies and/or settlement agreements, we are here to help navigate your business through these difficult times.

For further assistance or advice about the topics raised in this blog, get in touch with our Employment team by calling 01924 387110 or requesting a call back.

 


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