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6 November 2020

All change....Again....and Again! 

 

The facts of the furlough scheme extension, first announced on Saturday 31st October with a further update and extension following on Thursday 5th November, are as follows:

The government's furlough scheme pages continue to be intermittently updated - the new scheme largely follows the first scheme, with the key exception being the change of dates in who can be eligible (anyone that was already reported as on the payroll on 30th October).

There is one other, more unfortunate, change in that the Job Retention Bonus – set to be paid for employers who kept people on furlough until the end of January at a rate of £1,000 per employer has now been shelved indefinitely. We may see its return as HMRC have said that “An alternative retention incentive will be put in place at the appropriate time”, but as we know, nothing is guaranteed these days.  We have already spoken to clients who are very frustrated by this as it had been built into budgeting plans.

Another thing to note is that people who were on the payroll on 23 September 2020 but were since made redundant may be re-employed and furloughed but we would express extreme caution if you are thinking of doing this – please contact Embrace HR if this is a consideration as you will need to consider the circumstances carefully and look at the employment law implications.  Note that from 1st December, employers will no longer be able to reclaim the relevant proportion of notice pay via the furlough scheme.    

You may find the following page a useful starting point if you’re looking at what else might be available for your business:

https://www.gov.uk/guidance/help-and-support-if-your-business-is-affected-by-coronavirus-covid-19

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