Extension of Furlough (March 2021)

Extension of Furlough Scheme – The Latest Position November 2020

On 5 November, the chancellor, Rishi Sunak, announced that the Coronavirus Job Retention (furlough) Scheme has been extended until the end of March 2021. For claim periods up to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. This percentage may be reviewed for February and March 2021. Employers will only have to cover national insurance and pension contributions for employees who have been furloughed under the extended Coronavirus Job Retention Scheme.

Flexible furloughing wlll be allowed, in addition to full-time furloughing. Employers will need to report and claim for a minimum of 7 calendar days.

The planned Job Support Scheme and the £1,000 Job Retention Bonus have been put on hold for the time being. Sunak advised that a new "retention incentive" would be deployed at an "appropriate time".

In respect of the self-employed, the employment support scheme for the self-employed has been increased and will be worth 80% of average trading profits, instead of 55%, up to £7,500.

Simply-docs will be updating its furlough scheme guidance and documentation over the upcoming weeks.