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Coronavirus Furlough Scheme Extended

HMRC have announced they will be extending the Coronavirus Job Retention Scheme until the end of October 2020.

The announcement confirms the scheme will continue to be fully funded by the government until the end of July 2020 with changes planned from the beginning of August 2020. The changes will see employees being allowed to return to work part-time with employers asked to pay a percentage towards salaries.

Whilst the percentage is not confirmed it has been reported that the 80% funding provided by HMRC will be reduced to 60% with employers asked to fund the remaining 20%, we await further updates, which are expected at the end of the month.

Current
  • Employees can be furloughed for a minimum of three weeks by employers.
  • They must not complete any work during this time but can undertake training.
  • At each three week interval the situation can be reviewed and employees can be asked to come back to work for a single day (or more), before being furloughed again for a minimum of three weeks.
  • Bank holidays – if the business is usually closed, employees are still entitled to take this time off if agreed and must be paid the additional 20% of pay for these days. Alternatively employers can agree to an additional day off in lieu and 80% furlough will be payable only as per ACAS guidance.
 From August 2020
  • Employees can be furloughed for a minimum of three weeks however they will be able to return to work on a part time basis.
  • The government will continue to fund a percentage of the furlough payments however, employers will also be asked to ‘top up’ this funding to ensure employees continue to receive 80% of their pay.

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