The Latest On The Government’s Furlough Scheme

Like us, you’re probably struggling to keep up.

First, we had the Coronavirus Job Retention Scheme (what I now like to call the original furlough scheme). Then we had part furlough. And finally, we had to get our heads around the Job Support Scheme Open. And then the Job Support Scheme Closed.

The Latest Announcement

But now, following the Government’s announcement on 31 October 2020, we’re going back to the beginning.

The original furlough scheme will be extended until December 2020 (with no gap in government support). ‘Until December’ does indeed seem vague. However, it’s likely that it’s intentional in case the second lockdown (lasting from Thursday 5 November until 2 December) is extended.

What Does This Mean In Practical Terms?

Employees will continue to receive 80% of their salary for hours not worked, up to a maximum of £2,500. Employers continue to have the option of furloughing staff full time, or on a part time basis.

Eligible employees are those who were on your payroll on 30 October 2020. This will be very good news for staff who weren’t eligible under the old scheme, and may not have been under the new Job Support Schemes either.

You may remember that employers’ contributions have gradually increased over the last few months. However, with the extended furlough scheme, employers are only required to cover National Insurance and pension contributions.

For now, this means that the Job Support Open and Closed Schemes have been delayed.

Do You Need Furlough Agreements For Your Staff?

The furlough scheme announcement is a welcome relief to businesses as we enter the second phase of lockdown. This will undoubtedly be a hard winter.

We’re finishing off our updated furlough agreements so, as always, if you need any assistance, please do contact us.

You can reach our Employment team by calling 01752 827081, or by emailing employment@nash.co.uk

The team are working through lockdown and, as a result, are available to help with furlough and all other employment related queries.

Written by Rachel Collins, Associate Solicitor at Nash & Co