Extended Coronavirus Job Retention (Furlough) Scheme

November 2020

On 5 November, the Government announced that the Coronavirus Job Retention (Furlough) Scheme will be extended to 31 March 2021.

Employers can backdate the start date of a furlough agreement to 1 November provided that the furlough agreement is in place on, or before, FRIDAY 13 NOVEMBER 2020.

The updated Coronavirus Job Retention Scheme Furlough Leave Agreement, Flexible Furlough Agreement Letter and Directors' Furlough templates are now available and can be used for the extended Coronavirus Job Retention (Furlough) Scheme.

Staff may be designated (with their agreement) as a "furloughed worker” and the Company can continue to pay them through funding from the Government's Coronavirus Job Retention Scheme (CJRS). In order to be eligible for the extended CJRS, employees must have been on the payroll on, or before, 30 October 2020. Employees cannot work for the employer while on furlough leave. The Government will reimburse 80% of the wage cost of furloughed employees up to a cap of £2500 per month. Employers can, but are not required to, make up the 20%.

Employers cannot claim for pension contributions or employer NICs from the CJRS.

The Coronavirus Job Retention Scheme – Agreement for Furlough Leave should be used to seek employees’ agreement to the Company placing, or retaining, them on Furlough Leave.

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.