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Boris Johnson announced on Sunday that the Coronavirus Job Support Scheme which was due to come into effect from 1st November 2020 has been postponed as the Country is set to enter another period of lockdown in England for a period of initially 1 month to 2nd December 2020.
Instead the Government has relaunched the Furlough Scheme which came to an end on 31st October 2020. The Furlough Scheme will now continue until December. The precise end date is unclear but is likely to co-inside with the period of lockdown restrictions.
An important aspect of the relaunched Furlough Scheme is that the monies Employers can recover from the Government Grant during the lockdown period has been reset at 80% along the same lines as when the Scheme was revised in August rather than having a simple extension of the current offering which sees businesses recovering only 60%.
At the end of October 2020 the current maximum Government contribution under the furlough scheme was 60% of normal pay (up to a cap of £1,875) but the extended furlough scheme will relaunch with entitlements under the scheme being the same as how things were in August, when the government contribution was 80% of wages up to a cap of £2,500 and employers just paid employer NICs and pension contributions.
In the current Furlough Scheme provisions Flexi Furlough will continue to be available to Employers so Employees will be able to work part time hours and receive a grant for the balance of hours they would have normally worked up to the cap.
To be eligible for a Furlough Grant the employee must have been on the Employer’s PAYE Payroll before midnight on 30th October 2020 but there is no requirement that the Employee must have been on Furlough before.
As this was such a last-minute announcement many businesses had already lined up arrangements for employees to work under the JSS provisions in anticipation of the launch of the scheme which was due to take place on 1st November 2020. These Employers will now need to contact the Employees who will be affected and to ask them to furlough instead.
This is seen by many as a more beneficial grant from the Government rather than the financially rewarding JSS grant and as such will see affected businesses receive more by way of financial assistance under this relaunched Furlough Scheme than they would have achieved under the JSS provisions.
In the event you would like further information or if you would like some assistance with some standard wording to be sent to employees. Please do not hesitate to contact the Biscoes Employment Team who will be happy to assist. Contact us today on 0800 413 463 or email info@biscoes-law.co.uk