Terms of latest furlough extension revealed

Now that the guidance has been updated following the Chancellor’s announcement in last week’s budget, we know a little more about how the latest extension of the Coronavirus Job Retention Scheme will work. For more information, see our recently updated FAQ document.

The key points can be summarised as follows:

  • The Scheme (in its current flexible form) will be extended until the end of September 2021
  • Employers will start to pay a contribution of 10% of normal wages for normal hours not worked in July, rising to 20% in August and September
  • For claims for periods from 1 May onwards, staff must have been in post and on the payroll from 2 March 2021 to qualify
  • For claims from now until the end of April, the equivalent cut-off date remains 30 October 2020
  • Information about how to calculate normal wages and normal hours for claim periods after the end of April will be published “in due course”

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Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.

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