Summary of Extended Furlough Scheme on 5 November 2020

From 5 November 2020 the furlough scheme is being extended to coincide with the new national lockdown restrictions.

The Job Support Scheme will not come into force on 1 November 2020 as originally planned. It is unlikely that the Job Support Scheme will come into force until the end of the extended furlough scheme on 3 December 2020.

The terms of the extended furlough scheme are as follows:

• The Government will pay80%of normal wages up to a cap of £2,500 per month
• Employers will only be required to cover National Insurance Contributions and employer pension contributions for employees on furlough
• This mirrors the furlough scheme which was available in August 2020 and therefore is more generous than the Job Support Scheme where employers had to contribute 20% of wages
• Neither the employer nor the employee needs previously to have been on furlough. This is a significant departure from the original furlough scheme where employees could only be furloughed if they had had been furloughed prior to June 2020. Therefore, more employees could be eligible for the extended furlough scheme
• To be eligible, employees must be on an employer’s PAYE payroll by 30 October 2020
• Flexible furlough will continue to be available as well as full time furlough
• The government will confirm shortly when claims can first be made but there will be no gap in support between 31 October 2020 when the original furlough scheme was due to end and this extended furlough scheme
• The extended furlough scheme is due to last until 3 December 2020 to coincide with the end of the national lockdown restrictions
• The Government has advised that employees “who can work effectively from home must do so”. The word “effectively” was not included in the original furlough guidance. The precise wording of the legislation is awaited so that employers can understand what this means for their staff
• For employees who cannot work from home, the guidance states that they should continue to attend their workplace. Travel to work is permitted where work cannot be done from home.

Claire Cole
(Partner/Head of Employment)

For further advice of any of the above changes or any employment related matters, please contact Claire Cole on 01905 726600 or email Claire.cole@hallmarkhulme.co.uk

The contents of this article are for purposes of general awareness only. They do not purport to constitute legal or professional advice. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.