Job Retention Scheme (Update)

FURLOUGH SCHEME EXTENDED/RETENTION BONUS SCRAPPED

Due to the second lockdown commencing in England this week, the chancellor has announced that the furlough scheme will continue until the end of March 2021.

This was originally due to cease on 31st October 2020 with a new Job Support Scheme scheduled to start on 1st November.

This will ensure employees receive 80% of their current salary for hours not worked, up to £2,500 per month.

Employers will only be required to cover National Insurance and pension contributions for employees who have been furloughed under this scheme.

This will cover all employees who were on the payroll as of 30th October 2020.

As a result of this extension, the Job Retention Bonus which was originally scheduled for payment to employers early next year has been scrapped, with a view to this being reviewed after March 2021.