- Extension to 'Furlough' Scheme
Extension to ‘Furlough’ Scheme
Extension to ‘Furlough’ Scheme12th May 2020 - Published by Kuits employment team
Furlough Scheme Extension
Chancellor Rishi Sunak today announced that the Coronavirus Job Retention Scheme would be extended until the end of October 2020.
The scheme would continue to fund 80% of furloughed employees’ salaries, subject to a cap of £2,500 a month, until the end of July. This will provide some relief to employers who were concerned about a cliff edge at the end of June when the scheme was previously due to end, with 7.5 million of the UK workforce currently on furlough leave.
From August until the end of October, it is expected that there will be a gradual phasing out of the scheme. The government will ask employers to “start sharing” the cost of the Scheme. Early indications are that the government will retain the existing level of funding.
It is also expected that employees will be allowed to work part-time as the Scheme winds down and the government attempts to get people back to work.
Further details on the changes to the Scheme will be published by the government towards the end of May.
Get in touch with an employment solicitor in Manchester
To speak to an experienced advisor for advice on the Job Retention Scheme and/or a potential redundancy consultation in your business, please call Kevin McKenna on 0161 838 7851 or email email@example.com