Jarred Consulting

This fourth note dealing with the Coronavirus Job Retention Scheme (“Furlough Scheme”) follows an announcement made by the Chancellor of the Exchequer on 12 May 2020.  As has been the case with previous announcements we do not, at the time of writing, know the full details therefore we will publish further updates as we get clarifications. Please note that this note is intended to be supplementary to those published by us on the 5^th May 2020. https://jarredconsulting.co.uk/furlough-updated-part-3-your-questions-answered/ Furlough Updated – Your Questions Answered What has changed? The immediate change is the extension of the current furlough scheme, which pays 80% of furloughed employees’ wages up to £2,500 per month, until the end of July 2020. The Chancellor has confirmed that thereafter a revised furlough scheme will be in place until the end of October 2020. The construction of the scheme for the months of August, September and October are as yet unclear however the government has stated that “new flexibility will be introduced from August to get employees back to work and boost the economy”. The Chancellor also said that from August he would ask companies to “start sharing” the cost, indicating that a winding down of the scheme is likely. What action should employers take? Firstly, employers should take the necessary steps, if appropriate, to extend current furlough leave until the end of July 2020. In communications we recommend that employers acknowledge that the scheme will extend to October 2020 and that further communications will follow once the details of the revised scheme, from August, are known. Whilst it will be difficult to fully plan for people returning to work on a part-time basis from August, you should start to give thought to that now. What happens next? Further details of the furlough arrangements for August through to the end of October 2020 are due to be released by the end of May. In the meantime, do contact us if there are any aspects of the scheme we can help you with at [email protected] Written by our associate Euan Graham