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12 May 2020

Employment

Job Retention Scheme: Furlough extended until October

The Chancellor, Rishi Sunak, has today announced a four months' extension to the Job Retention Scheme (JRS). Currently, at least, 7.5 million employees have been furloughed in the UK. Daniel Wilde, our Head of Employment Law, dissects this latest update and explains how this will impact employers.

What changes have been announced?

  • Coronavirus Job Retention Scheme will continue until the end of October
  • Furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
  • New flexibility will be introduced from August to get employees back to work and boost economy

Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

Workers can return to work part-time from August

From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. Details of how this will be implemented have not yet been announced with details promised by the end of the month.

These details will answer the pressing question that now exists as to whether the current subsidy will still be available in full if employers are not able to ask their employees to return part time. Our initial interpretation is yes but as ever the devil will be in the detail.

Get in touch…

As ever if you require detailed employment law advice please do not hesitate to contact Daniel Wilde at Harding Evans Solicitors by calling 01633244233 or emailing wilded@hevans.com

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