The Coronavirus Job Retention Scheme: Further Extension

On 12 May 2020 the Chancellor announced the extension of the government’s Coronavirus Job Retention Scheme until the end of October and the introduction of new ‘part-time’ furlough flexibility from August. Further details and clarifications are expected to be released over the next few weeks however we set out below the details of the announcement.

We at Statura will continue to monitor any relevant development / announcement and are actively working with employment law specialists in order to keep our clients updated and to support them during the CJRS claims process. In the meantime, please speak to your usual Statura contact should you wish to discuss the content of this document or indeed the way in which the COVID-19 outbreak is affecting your business in more detail.

CJRS Extension to the end of October

The Coronavirus Job Retention Scheme will continue to operate until end of October and, in particular, it will continue in its current form until the end of July (please refer to our previous articles for further details) and then from August to the end of October the measure will continue with greater flexibility.

From the start of August, furloughed workers will be able to return to work part-time with employers asked to pay a percentage towards the salaries of their furloughed staff. Part-time working will however only be permitted for employers “currently using” the scheme.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. Exactly how this will work in practice is yet to be confirmed however more specific details around the implementation of the new phase of the scheme will be made available by the end of May.

The government will also explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period.