On 12 May 2020 the Chancellor of the Exchequer announced the Coronavirus Job Retention Scheme (“the furlough scheme”) will be extended by 4 months to 31 October 2020.
Full details are to follow but the Chancellor has indicated that:-
- Until the end of July there will be no changes to this Scheme.
- Furloughed workers will continue to receive 80% of their normal wages (capped at £2,500.00 per month per employee).
- From August all sectors will be given ‘greater flexibility’ with furloughed workers able to return part time as part of a phased return to work.
- Employers will be expected to share the costs of the payments to their employees from August. Employers will be asked to pay a percentage towards the salaries of their furloughed staff. We do not know what the percentage will be yet. The employer payments will substitute in part the contribution the Government are currently making but employees will still continue to receive 80% of their normal wages (capped at £2,500.00 per month per employee).
Further information including details of what percentage the employer may have to contribute, is expected by the end of May.
Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.
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Hart Reade are here to help you in Eastbourne, Meads, Hailsham and Polegate. All departments are fully operational and ready to progress matters quickly. We can you practical advice on any matters relating to employment.
We advise both employers and employees. If you would like employment advice regarding the Scheme or any other employment issue please do not hesitate to contact us to arrange a telephone/video appointment.
If you would like to get in touch with one of our Employment Solicitors, then please call 01323 727321. Or alternatively, please fill in the form below and someone will be in touch.
Author: Jacqueline Penfold. Litigation and Employment, Partner