Updated Guidance on Furlough Scheme

As you will know, the Coronavirus Job Retention Scheme has been extended by the Government. Here are the key points you need to know:

It will remain open until 31 March 2021;

From 1 November 2020, employers can claim 80% of an employee’s usual salary for hours not worked, up to a maximum of £2,500 per month;

Employer’s can furlough employees who were on its payroll at 30 October 2020;

The employee does not need to have been furloughed previously;

It applies to any type of employment contract as long as the employee is paid through PAYE;

Employees may be fully furloughed or flexible furloughed; and

The employer must agree furlough arrangements with the employee, confirm the details in writing and keep a record of it for five years.

Another interesting point… Employees who were made redundant on or after 23 September 2020 may be re-employed and put on furlough!

Due to the unexpected back-track of the Government, we know that many employers have already started making redundancies. If you are now in a position where you don’t know what to do, give us a call and we can provide some advice!

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