The Coronavirus Job Retention Scheme (Furlough) has been extended to March 2021 (with a review planned for January 2021), with employees still receiving 80% of their current salary for hours not worked up to a maximum of £2,500.
However, under the extended scheme, the cost for employers will be reduced compared to the current scheme, which ended on the 31st October 2020, as they will only be asked to cover National Insurance and employer pension contributions with the government paying the full 80% of wages.
Businesses will continue to have the flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time. Furloughed employees must have been on the payroll since 30th October 2020 to qualify.
While the government updates the system to accommodate the extension, employers will submit their wage claim to the government and be refunded afterwards. After that, they will be paid upfront to cover the cost.
You can read our original Furlough Scheme blog, written in May 2020, here, as well as our update re the flexible Furlough Scheme, written in June 2020, here.