The Government announced on the 31st October 2020 that the Coronavirus Job Retention Scheme (CJRS) or otherwise known as Furlough Scheme has been extended. As of the 1st November 2020 employers can use the CJRS/Furlough scheme for a further month. The Job Support Scheme (JSS) has now been postponed until the Furlough scheme ends.
What does this mean for businesses?
Employers that were going to use the new JSS, are now able to retain their staff on Furlough of 80% for their current salary for non worked hours, or up to a cap of £2,500.
The Furlough scheme is more generous in November 2020 then October 2020. Employers have the flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time. The cost is to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
As before, this needs to be agreed with the employee and new letters issued to reflect the changes.
More guidance to follow, once made available.