Nov 6

Furlough extended until end of March 2021….

Tags:

The government has just announced that the Coronavirus Job Retention Scheme (the furlough scheme) will now continue until 31 March 2021 as follows:

• The employer must have made a PAYE RTI submission between 20 March 2020 and 30 October 2020.

• The employee must have been on payroll on 30 October 2020.

• Employer does not need to have used the furlough scheme before.

• Employer can fully furlough employees or use the flexible furlough scheme – employees can work full time, part time, undertake shift work or take on no work at all.

• Employers will only be asked to cover National Insurance and employer pension costs for employees who are fully furloughed.

• Employers will have to pay their employees usual wages for the hours worked.

• The furlough scheme can be used for employees who are shielding or who have caring responsibilities.

• Employees on payroll on 23 September 2020 and who were subsequently made redundant (or who were on a fixed term contract which expired on or after 23 September 2020) can be re-employed and claimed for provided an RTI submission was made from 20 March until 23 September 2020.

• To be eligible for the grant the employer must confirm in writing to the employee that they have been fully or flexibly furloughed.

• The employer will be able to claim 80% of the employee’s usual wages up to a maximum of £2,500 per month – the cap of £2,500 being proportional to the hours not worked.

• This scheme will be reviewed by the government in January 2021.

Any queries email nicola.goodridge@goodhr.co.uk or call +44 (0)7917 878384