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Extension of Coronavirus Job Retention Scheme

March 2021

In the budget, the Chancellor Rishi Sunak announced an extension of the Coronavirus Job Retention Scheme (furlough) until 30 September 2021, with employer contributions gradually increasing from 1 July.

The furlough scheme will work like this:

· Until the end of June, the Government will continue to pay up to 80% of employees’ usual pay, capped at £2,500 per month.

· In July 2021, employers will contribute 10%, with the Government contributing 70%.

· In August and September 2021, employers will contribute 20%, with the Government contributing 60%.

Employers will continue to pay all employers’ National Insurance and pension contributions.

Flexible furlough will continue to be an option, so employees will be able to work part-time and receive a furlough grant for their unworked hours.

Updated Documents

The following documents have been updated in accordance with the above changes:

New Joiners

Employers are able to claim for new joiners who started between 31 October 2020 and 2 March 2021 but must wait until May before furloughing them. Employers cannot claim for any new joiner who is recruited on or after 3 March.

Job Retention Bonus and Job Support Scheme

In respect of the Job Retention Bonus and Job Support Scheme, these look to have been postponed indefinitely and look unlikely to be introduced at all.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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