05/11/20

Furlough Scheme extended to March 2021

The Chancellor has this afternoon announced that the Coronavirus Job Retention Scheme (CJRS), or “the furlough scheme”, will remain open until 31 March 2021.

Full guidance is due to be published next week, on 10 November 2020, but we have summarised the key points from the announcement:

  • Until the end of January 2021, the CJRS will pay up to 80% of an employee’s pay, up to £2,500 a month (the employer will be responsible for tax and NI contributions on the 80%). This broadly mirrors how the scheme operated in August 2020.
  • The scheme will be reviewed in January 2021.
  • Employers will be able to continue to use the scheme on a full or flexible basis.
  • The calculation of furlough pay will remain the same, although employees who have not previously been furloughed will have a different pay/hours reference period.
  • Employees who were made redundant after 23 September 2020 can be rehired and put back on furlough.
  • Employers can claim even if they, or the relevant employees, had not previously used the CJRS.
  • Employees can be furloughed if they may be identified as Clinically Extremely Vulnerable (either by having one of more of the medical conditions as set out in the guidance or if they are on a Shielded Patients List) However there is no obligation on an employer to furlough such employees.
  • Any flexible furlough or furlough agreement made retrospectively that has effect from 1 November 2020 will be valid for the purposes of a CJRS claim provided that it is in place up to and including 13 November 2020.

For more information please see the policy paper.

If you need advice in relation to the CJRS, putting the relevant agreements in place or any other related issues please contact the Employment Team.

05/11/20

About the author

Kitsons Solicitors - Rosie Evans

Rosie EvansSolicitor

Rosie is a Solicitor in our Employment Team

More about Rosie