Following announcements by the Chancellor on 12 May on extending the period of furlough support we wanted to update you with the latest information on the Coronavirus job retention scheme.
Extension to the scheme
The Chancellor has confirmed that the scheme is to be extended until the end of October. However, it will only exist in its current form until the end of July.
From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.
Exact details of the increased flexibility and shared cost will not be announced until the end of May.
There has been clarification from the government that any bank holidays during a period of furlough must be paid in full and not at the reduced 80% rate therefore an adjustment will be required to your May payroll to top up for the four bank holidays that have occurred in April and May. You will still be able to claim the 80% from the furlough scheme and the 20% top up has to be borne by the employer.
Full guidance on this and other holiday pay and entitlement issues is available here
Please ensure that you advise us as soon as any employees return to work following furlough so we can ensure this is reflected in future claims.
If you have any queries on any of these issues please contact us and we will be happy to help.
Government guidance for employers and businesses is here
Details of support for businesses and employers is here