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.
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.
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 Deborah West on 01202 294 566 or email DeborahWest@steeleraymond.co.uk. Alternatively, contact a member of our Employment team in Bournemouth.
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