Furlough Scheme Extended
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.
The following documents have been updated in accordance with the above changes:
- Coronavirus Job Retention Scheme Furlough Leave Letter ;
- Coronavirus Job Retention Scheme Furlough Leave Agreement ;
- Flexible Furlough Agreement Letter ;
- Guidance Notes on the Coronavirus Job Retention Scheme and Furlough Leave ;
- Director’s Coronavirus Job Retention Furlough Letter ;
- Director’s Coronavirus Job Retention Furlough Response Letter ;
- Directors’ Flexible Furlough Agreement Letter ; and
- Board Minutes to Furlough Directors under the Coronavirus Job Retention Scheme .
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.