Latest: Extended Furlough Scheme
Following the announcements over the weekend by the government below are details about the extension of the Furlough Scheme.
The existing Furlough Scheme is being extended and the Job Support Scheme (JSS) is now being put on hold and will come into effect once the extension of the Furlough Scheme has ended. The scheme will continue until December and the new national restrictions will be reviewed on 2 December.
The Scheme will continue to be operate as a Flexible Furlough Scheme, so employees can work some of their hours or they can be furloughed for the whole of their working hours.
Other key points:
- The Government will pay up to 80% of an employee’s salary/wage, capped at £2.5k and employers will have to pay NICs and pension contributions ( this is different from the current Furlough Scheme that was in place in October where the Government contributed 60%).
- If businesses are using Flexible Furlough, they will need to pay employees for any hours that they work.
- In order to be eligible for this new extended Furlough Scheme, an employee must have been on the PAYE payroll before midnight on 30 October 2020 and an RTI submission made on or before 30 October 2020. This means that even employees who didn’t qualify before, due to the cut off dates, can now be furloughed,.
- Employees can be on any type of contract to qualify; fixed term, zero hours etc.
- Businesses that claim for the extended Furlough Scheme will need to report and claim for a minimum period of 7 consecutive calendar days.
- Employers will be able to top up the furlough payment so that employees will receive an addition to the 80% or cap
- There will be no gap between the end of the Furlough Scheme on 31 October and the extended Furlough Scheme starting on 1 November
For businesses that have already made an agreement with employees under the JSS, then they will need to revisit it as the JSS will no longer be in place from 1 November 2020 and will come into effect at a later date.
Further Guidance is expected in due course. We’re here to support you through this difficult time and we’ll keep you updated.
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