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(Updated) COVID-19: Coronavirus Job Retention Scheme extended and Job Support Scheme postponed


Following an initial announcement that the Coronavirus Job Retention Scheme (Furlough Scheme) would be extended until 2 December 2020, Chancellor Rishi Sunak has now confirmed that the Furlough Scheme will remain open until 31 March 2021.

For claim periods up to the end of January 2021, Government funding will return to original levels, providing employees with 80% of their current salary for hours not worked, up to a maximum of £2,500 per month,  with employers continuing to be responsible for employer NICs and pension contributions. The policy will be reviewed in January 2021 to determine whether contribution levels should change for February and March.

As before, employers will have the option to place employees on either full or flexible furlough and should continue to pay the employee for any hours worked in the normal way.


  • All employers with a UK bank account and UK PAYE schemes can claim the grant and neither the employer nor the relevant employee needs to have previously used the Furlough Scheme.
  • Employees must be on an employer’s PAYE payroll by 23:59 30th October 2020.
  • Employees that were employed and on the payroll on 23 September 2020 who were made redundant or stopped working after that date can be re-employed and claimed for.

Job Support Scheme postponed

In light of the extension of the Furlough Scheme, both the Job Support Scheme and the Job Retention Bonus have been put on hold.

For more information on the JSS, see our recent article: Coronavirus Job Support Scheme: Five Questions Answered

*The information set out in this article is correct at the date of publication (10 November, 2020). The effect of coronavirus on businesses is a fast-changing area and so it is important to obtain legal advice to ensure you are properly protected. Visit our Coronavirus (COVID-19) Hub for more Leading Insights.

Contact us

If you have any questions regarding the impact of the Coronavirus upon your business or are seeking up-to-date legal advice on employment matters, contact Peter Rolph on 01202 294 566 or email [email protected] . Alternatively, contact a member of our Employment team in Bournemouth.

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