Most employers who are eligible will be aware that the furlough scheme (the Coronavirus Job Retention Scheme) has been extended for five months – from 1 November 2020 to 31 March 2021.
The general terms for the first quarter to 31 January 2021 are:
- Maximum claim per employee is 80% of hours not worked.
- Furlough claims will be capped at £2,500 per employee per month for hours not worked.
- Employers will remain responsible for paying for any hours worked, albeit on a flexible basis, and for any pension and National Insurance costs.
- Employers can top-up wages for hours not worked at their discretion.
This is a welcome extension for many businesses that were facing difficult choices as the previous furlough scheme...