The Chancellor has announced today that the Coronavirus Job Retention Scheme (also known as the furlough scheme) will remain open until 31 March 2021.

For claim periods running to January 2021, employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.  Therefore, the scheme is more generous than the scheme running in September and October. However, the percentage may be reviewed for February and March.

Key Points of the Furlough Scheme

Full guidance is due to be published on 10 November 2020.  For now, the HMRC Policy Paper outlines the following key points:

  • the Coronavirus Job Retention Scheme will continue to be flexible – employees can continue to do some work
  • employers can claim even if they, or the relevant employees, had not previously used the Coronavirus Job Retention Scheme
  • employees who have previously been furloughed continue to have their reference pay and hours based on the existing furlough calculations. Full guidance will be provided on 10 November, but generally the pay is based on 80% of the wages payable in the last pay period ending on or before 30 October 2020 (for those on fixed wages), or 80% of the average payable between the start date of their employment or 6 April 2020 (whichever is later) and the day before their Coronavirus Job Retention Scheme extension furlough periods begins (for those on variable wages)
  • employees that were employed and on the payroll on 23 September 2020 who were made redundant or stopped working for their employer after that date can be re-employed and claimed for
  • Both the Job Support Scheme and the Job Retention Bonus have been placed on hold
  • employees can be furloughed if they are shielding in line with public health guidance (or need to stay at home with someone who is shielding)

If you would like to discuss this topic in more detail or would like more information, contact Ramshaw HR today.

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