Employment Law Update: Furlough Scheme Extended

Employment Law Update: Furlough Scheme Extended

Following the Prime Minister's announcement that the UK is due to go into lockdown from Thursday 5th November 2020, it was confirmed the furlough scheme currently in place is due to be extended.

The general principles of the scheme remain the same; the government will cover 80% of your normal pay if you are placed on furlough leave, up to a maximum of £2,500. There are however some very important differences to note:

  • The scheme has been opened up to employees and employers who have not previously used it. To qualify, the employee needs to be on the payroll and registered for PAYE with HMRC by 30 October 2020. This is relevant for people who have started a new job in recent months; and
  • Employers will be able to ask furloughed employees to return to work part time, whilst still seeking benefit from the scheme (by the employer covering NI contributions and employer pension contributions) or have the option to furlough them full-time.

Impact of this announcement on other rules

Much of the current economic support from the government was set to end on 1 November 2020. The Prime Minister's lockdown announcement and extension of the furlough scheme has subsequently put this transition on hold.

The Job Support Scheme has been postponed until the furlough scheme ends. The Government have not announced the scrapping of the scheme, but instead postponed it until the current furlough leave scheme ends.

Mortgage holidays are also being extended. This means borrowers will continue to be able to claim for mortgage holidays if their income has been impacted by coronavirus. The FCA is due to announce further information regarding this today.

Business grants will also continue to be available.

Further guidance and support on the current government economic support can be found at: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced

If you require specific legal advice on your employment rights, the furlough scheme or redundancy, please get in touch with our expert employment team today.

For straightforward and practical employment law advice, contact us today to discuss your individual circumstances in further detail. Call 01603 693500 or email us using 'Make an enquiry' form on our website. Face-to-face meetings are available by appointment only at our Norwich, North Walsham and Sheringham offices.

*This article is accurate at the time of writing (2nd November 2020). This article is provided for general information purposes only and does not constitute legal advice or other professional advice.