Extension to Furlough

Soon after the second national lockdown was announced, Chancellor Rishi Sunak stated that there will be 'significant extra support to protect jobs and livelihoods in every region and nation of the UK'.

Resultantly, the Coronavirus Job Retention Scheme (Furlough Scheme) will be in operation until March 2021 which could see eligible employees receive 80% of their normal salary for hours not worked. This is subject to cap of £2,500 per month and is largely more generous than the furlough scheme that began in September.

You will not need to contribute to cover the costs of hours not worked. However National Insurance and pension contributions do apply. These contribution rates will be reviewed in January and are subject to change, depending on the nation’s economic recovery.

Note that this development postpones the Job Retention Bonus originally planned in February. The Job Support Scheme has also been postponed because of this extension.

You can claim for employees who have not previously been furloughed and can flex the furlough claims to allow for part time working. Employees can be furloughed even if they are shielding in accordance with public health guidance.

At Amica HR, we have a wealth of experience in helping businesses consult with and place employees onto the Furlough scheme. If you require support around checking eligibility, consulting with staff, or if you want to find out how we can work in partnership with you to benefit your business, you can contact a member of the team on 01522 370190 or 0207110 0006 or you can email us at info@amicahr.co.uk .