REFORMS TO THE CORONAVIRUS JOB RETENTION SCHEME

The UK government announced the following reforms to the Coronavirus Job Retention Scheme on 29th May 2020:

  1. The scheme will close to new entrants on 30th June 2020. Therefore, the last day that employers can place employees on furlough is 10th June 2020 as new entrants must have been furloughed for a full 3 weeks prior to 30th June 2020.
  1. From 1st July 2020 employees will be able to be furloughed on a part time basis. This means that employees can be brought back to work on a part time basis, being paid in full by the employer for when they are doing work, and also receiving 80% of wages for any of their normal hours that they are not working through the furlough scheme.
  1. From 1st August 2020 the government will pay 80% of wages up to a cap of £2,500 but employers will be responsible for paying the National Insurance Contributions and pension contributions.
  1. From 1st September 2020 the government will only pay 70% of wages and the employer will be responsible for topping this up to 80% (up to a cap of £2500)
  1. From 1st October 2020 the government will only pay 60% of wages and the employer will be responsible for topping this up to 80% (up to a cap of £2500)
  1. The scheme will close on 31st October 2020.

If you wish to discuss the above article, or require further clarification on the matter, please contact our employment department at the following email addresses:

John McShane –           john.mcshane@mtb-law.co.uk
 
Judy Hamilton –           judyh@mtb-law.co.uk