By David Reid, Director.
On Saturday, in conjunction with the announcement of a further national lockdown in England, the government decided to extend the Coronavirus Job Retention Scheme (furlough scheme) until December and postponed the start of the Job Support Scheme (JSS), which had been due to come into effect on 1 November. The JSS is now expected to come into force in early December but as experience has shown us, this could very well be subject to further change.
The extension to the furlough scheme applies to all four nations of the UK with immediate effect.
For the month of November, employers can furlough their employees on the same terms as applied in August this year – the government will pay 80% of the employee’s wages up to a cap of £2,500 per month. The employer does not require to contribute anything towards the 80% of wages, but will have to pay employer’s National Insurance contributions and an employer’s pension contribution at minimum auto-enrolment levels on the sums paid to the employee. These will not be reimbursed.
It will be possible to furlough employees who have never been furloughed before, as long as the employer has made a Real Time Information (RTI) submission notifying a PAYE payment for that employee to HMRC on or before 30 October 2020.
It will also remain possible to have employees on flexible furlough throughout the month of November, where an employee works some of their contracted hours (and is paid in full by the employer for these hours) and is on furlough for the remainder of their contracted hours.
Just Employment Law will send out an information pack to retained clients as soon as possible, providing guidance on how to move employees onto furlough for November in various different scenarios. We will also provide updated furlough and flexible furlough agreements for those who require them.
You can read the government announcement here: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced
If you have any questions on the extension of the furlough scheme or the postponement of the JSS, please call us on 0141 331 5150.