In depth

Furlough scheme extended as England faces national lockdown

Gateley Legal

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It has been confirmed that following the Prime Minister’s announcement of a second lockdown in England the Job Retention Scheme is being extended in the whole of the UK until December 2020.

There are key differences though from the furlough scheme that has been in place over the last few months.

  • Employers will be able to use furlough even if they have never used it before
  • Similarly, there is no exclusion of employees who have never been furloughed before.
  • Employees can be furloughed if they were on the employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
  • The new furlough scheme will be open to all sizes of business.
  • The option of flexible furlough will be kept so that employers can agree either full-time furlough or part-time hours for employees and furlough for the remainder of their normal hours.
  • Employees can be on any type of contract as long as paid through PAYE.
  • Employers will be able to agree any working arrangements with employees.
  • For worked hours employees will be paid by their employer in accordance with their contract of employment 
  • Employers will be able to apply for grants to cover 80% of the wages up to a maximum of £2,500 for the unworked hours as it was in August. 
  • The grants can be applied for and paid upfront before the wages are paid unlike the proposed reimbursement grants under the Job Support Scheme
  • The Job Support Scheme will only come into force when the extended furlough scheme ends

Do you require further guidance?

For more information regarding the extension to the Job Retention Scheme and any other related queries, please contact our expert listed below.

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