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Legal News | 6.11.20


As you may already know, the current furlough scheme that has been running since March of this year was originally due to end on 31 October 2020 with the new Job Support Scheme (JSS) set to launch on 1 November 2020. Despite this, on 5 November 2020, Chancellor Rishi Sunak announced that the Coronavirus Job Retention Scheme will be extended until the end of March.

What happens now?

The planned Job Support Scheme has been delayed and will now start when the new furlough extension comes to an end. The extended furlough scheme will continue until the end of March, with a review of the policy in January 2021. As part of the reworked scheme, any employee made redundant after 23 September 2020 can be rehired and put back on furlough.

The government were gradually reducing their contribution under the furlough scheme; contributing 60% of normal pay and leaving the employer to contribute 20% in October; but the extended furlough scheme will return to the original August 2020 contribution of 80% up to £2,500 a month. As before, employers will remain responsible for National Insurance and minimum pension contributions. Flexi-furlough will continue to be available, so employees have the option to work part-time and receive a furlough grant for their unworked hours.

If you would like more specific advice on the impact of the postponement of the Job Support Scheme on your business or to discuss your options for the furlough extension, then please get in touch with your usual contact or email: emma.jewell@wansbroughs.com.