Coronavirus Job Retention (Furlough) Scheme Extended

The new Job Support Scheme (“JSS”) was due to be introduced on 1 November and the furlough scheme was due to end on 31 October 2020. However, as the government announced a new lockdown to commence on 5 November 2020, the JSS has now been put on hold and the Coronavirus Job Retention (Furlough) Scheme (“CJRS”), which has been in place since August 2020, will be extended and last until 2 December.

The following are some key features of the CJRS which all businesses are eligible for:

  • The CJRS has now continued from the initial furlough scheme. No expiry date has yet been set;
  • The government will continue to pay 80% of normal wages, up to a cap of £2,500 per month;
  • Employers will only be responsible for NI and employer pension contributions for employees on furlough;
  • Neither the employer nor the employee needs to have previously used the CJRS. To be eligible, employees must have been on the employer’s payroll before midnight on 30 October;
  • Both flexible furloughing and full-time furloughing will continue to be available;
  • Shielding as practised in the spring will not currently be reintroduced.

The extended furlough scheme will continue “until December” and whilst an end date has yet to be confirmed, it is likely to continue until 2 December 2020. To find out more information about the JSS, please visit the government website here or contact us on 0207 956 8699/info@rllaw.co.uk for further information.

Update

Since publication of this article, the CJRS has been further extended to last until 31 March 2021. For further information, please visit the government website here.

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