Update on the Furlough Scheme

The Chancellor recently announced changes to the furlough scheme; in that, the scheme will continue in its current form until the end of July. This means that employers can continue to reclaim 80% of wage costs for furloughed employees up to the monthly cap of £2,500 from HMRC.

The scheme will then continue to October but with changes that will see the employer contributing to the 80%.  This is designed to facilitate employers gradually returning employees to work as the lock-down is eased, without losing the support of the scheme. Full details of the new arrangements from August will be issued by the government by the end of May.

This news come as welcoming relief for many businesses at this extremely challenging time. Should you require advice on how to implement the scheme at your workplace please don’t hesitate to contact us.

It will now be equally as important for employers to start thinking about how they gradually reduce their reliance on the scheme as it is wound down and the economy reopens. Businesses will need to start to consider their staffing needs moving forward and important questions like, “Can I now force staff to come back to work?” will arise. This is likely to need careful planning and the expert input of HR.

If you need advice on the furlough scheme or any other employment issues related to COVID-19, please get in touch. Advice on such matters and any other day to day employment law advice you may need, can be provided under our Work-for-Hire service, the prices for which start from just £140 per month. A subscription to our Work-for Hire service allows you:

  1. Genuinely unlimited advice on day to day employment law issues, including any advice you need in relation to the COVID-19;
  2. A full review of all of your contracts, policies and procedures to make sure those are up to date and legally compliant; and
  3. Unlimited supply of case management documents from our database.

Please don’t hesitate to contact me for a quote tailored to your business.

In the meantime, stay alert!