In welcome news for employers and employees alike, the government has announced that the Job Retention Scheme (JRS) will be extended until the end of October.
The scheme will continue in its current form until the end of July, continuing to pay up to £2,500 per month per furloughed employee or 80% of their monthly earnings, whichever is less. Read more about the current scheme.
From August, some changes will be made to the scheme, which are intended to provide flexibility for both businesses and workers and to encourage people back to work while keeping them safe. Firstly, the scheme will be amended to allow for partial furloughing. This will allow employees to return to work part time if necessary.
Also from August, employers will be asked to pay a proportion towards the amount their staff receive under the furlough scheme. Details of how much they will be asked to pay, and what employers should do if this isn’t affordable, are not yet available. We hope that the government considers carefully what would be a fair amount for employers to pay, recognising that some may still be struggling to keep afloat in these tough economic times.
More details on the changes are expected to be published at the end of May.