Pay Online
Instant Conveyancing Quote
Extended Coronavirus Job Retention Scheme (Furlough) as announced on 5 November 2020
Thursday, November 5, 2020
Thursday, November 5, 2020
The Chancellor has extended the extended furlough scheme which will now remain in force until 31 March 2021 and will be reviewed in January.
Individuals on furlough, whether full-time furlough or flexible furlough receive 80% of wages capped at £2,500. The pay cap is proportionate to hours not worked so if you are absent four days out of five the cap is £2,000, three days out of five £1,500.
An individual who is sick whilst on furlough may either received sick pay or continue to receive furlough as the employer chooses.
An individual who was on the payroll on 23 September 2020 and either made redundant or left afterwards can be re-employed and placed on furlough.
If an individual is on furlough for an employer they can undertake no remunerative work for that employer whilst on furlough. They can train. Alternatively, they can work elsewhere and still claim furlough monies if the contract so permits.
The employer pays the PAYE on the furlough monies received. The employer also has to pay the national insurance and pension.
Existing furlough claimants claim as presently permitted. For the new claimants to the scheme, if they receive a fixed salary as at 30 October 2020 then that is the basis of their claim. If their pay is variable then it is calculated as an average from their start date or 6 April (whichever is later) and the day of furlough itself.
Claims may be in advance or arrears. The claims window for November opens on 11 November and closes on 14 December 2020.
The job support scheme and job retention bonus have been deferred.
Crucially, any changes to the contract must be agreed and must be confirmed in writing by the employer. There is no need for the employee to respond but it is wisest to have them respond. Retrospective agreements to 1 November are permissible but they must be in place by 13 November 2020.
Stay safe. Wash your hands.
Written by Robert Gibson, Senior Consultant - Employment Law
Robert is a Senior Consultant at Samuel Phillips and specialises in employment and business matters. He advises in relation to employment and shareholder disputes, including pensions and related issues.
