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Furlough Scheme Extension

On Friday 30 October 2020, the Prime Minister announced that from 5 November 2020 England will be going into a second lockdown to help control the spread of the Coronavirus.

This will mean the closure of non-essential businesses and requirements for people to stay at home. As a result, there has been an extension to the Coronavirus Job Retention Scheme.  Also known as the furlough scheme, it was set to come to an end on 1 November 2020 and was to be replaced with the Job Support Scheme. This will now be postponed until the end of the furlough scheme.

However, the government recognises that the economic impact of another lockdown will significantly hamper employers’ abilities to keep on employees through a difficult period.

 

Extension of the Furlough Scheme

The Coronavirus Job Retention Scheme has been extended for a further 4 weeks to cover the period of the second lockdown.

Employers who furlough employees will be required to cover the national insurance and employer pension contributions. Putting an employee on furlough under the extension will mean that for the hours not worked by an employee, the government will pay 80% of the wages up to a cap of £2,500 per month.

This will make the scheme more generous in November as compared to the scheme in October 2020.

To be eligible for furlough under this extension, employees must be on an employer’s PAYE payroll by 23:59 on 30th October 2020.

 

For more information or advice on managing employees and the Furlough Scheme, please contact us to speak to one of our specialist employment lawyers directly. Alternativly you can call 0115 9 100 200 or click here to send an email.

Posted on November 2, 2020

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