Coronavirus Job Retention Scheme (Furlough) Update – 13th May 2020

Following our last update, which followed the announcement that the Coronavirus Job Retention Scheme (CJRS) scheme will be extended until the end of June, we have now been informed that the scheme will be extended further, until the end of October 2020. Although we know there will be some changes to the scheme post the end of June, the details surrounding what changes and new rules, if any, to expect are currently sparse and are not expected until the end of May 2020.

What we do know is that:-

• The CJRS will continue until the end of October;
• The scheme will continue in its current form until the end of July;
• Furloughed workers across the UK will continue to receive 80% of their current salary, up to £2,500;
• New flexibility will be introduced from August, with the intention being to get employees back to work and boost economy. From the start of August furloughed workers will be able to return to work part-time (if furlough leave is still needed), with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. As mentioned, the logistics of how this will work have not been confirmed as of yet.

We will of course be providing updates as and when we receive more information. If you have any queries in the meantime, please do not hesitate to contact our employment team on [email protected] or by telephoning 029 2009 5500.