Extension to Furlough for a Second Lockdown
Hours before the Coronavirus Job Retention Scheme (Furlough) was due to end the Prime Minister announced its extension together with a second national lockdown due to begin on 5 November 2020. The implementation of the Job Support Scheme (JSS) has been delayed until the end of the Furlough scheme.
Businesses should notify employees of this extension and ensure employees are clear about their obligations and pay levels during the second lockdown. In light of the extension to Furlough, organisations should review any proposed workforce changes, and plan for the end of the extension and the introduction of the JSS in December 2020.
Extension to Furlough
- The extension will mirror the support available to employers in August i.e. employees can receive 80% of their usual pay (up to £2,500 per month) for unworked hours. Employers will be required to cover national insurance and pension contributions.
- Full time and flexible furlough will continue to be available.
- Neither the employer nor the employee needs to have previously accessed the Furlough scheme.
- All employees on the employer’s PAYE payroll by 23:59 30 October 2020 will be eligible.
- All employers, small or large, will eligible (unlike the JSS).
- As before, public sector employers are not expected to use the extension to Furlough.
When can employers submit a claim for support under the extension to Furlough?
The Government has confirmed that there will be no gap in eligibility for furlough support. Although the national lockdown will not come into effect until 5 November 2020, employers can claim wage support under the extension to the Furlough scheme from 1 November 2020. There may be a short period where businesses are paid wage support in arrears while administrative updates are made to the system.
Which business venues are required to close?
All non-essential retail, hospitality, indoor and outdoor leisure facilities, entertainment venues and personal care facilities will be legally required to close from 5 November 2020 until 2 December 2020.
Which business venues are able to remain open?
Non-essential retail venues can remain open for delivery and click and collect services only. Hospitality venues must close but can provide takeaway and delivery services. Hotels and other accommodation can only open for those who have to travel for work purposes.
If you would like to talk through the consequences for your business, please email us and one of our team will get in touch.
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.
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