The government’s COVID-19 furlough scheme has been extended until March 2021. We take a look at the key information for members to be aware of
The government has decided to extend the COVID-19 Job Retention Scheme (CJRS) to support individuals and businesses who are impacted by COVID-19 this winter. This is an extension of the furlough scheme that was previously in place and it will remain open until 31 March 2021.
The less generous Job Support Scheme, that was due to start on Sunday 1 November 2020, has been postponed until the extended furlough scheme ends.
For claims up to 31 January 2021, eligible employees will receive 80% of their normal salary for hours not worked, up to a maximum of £2,500 per month. Employers will still have to pay employer National Insurance Contributions (NICs) and pension contributions for the hours the employee does not work. The scheme will be reviewed again in January 2021.
Below are some important points to note regarding the extended scheme.
- Employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020.
- Employees do not need to have been furloughed previously and can be on any type of employment contract.
- Employees can be flexibly furloughed on either a full time or part time basis.
- Employers will have to pay the employee for the hours they work and employer NICs and employer pension contributions.
- Employees can be furloughed where they are unable to work because they are shielding in line with public health guidance (or need to stay at home with someone who is shielding), have caring responsibilities resulting from COVID-19 or are absent due to ill health.
- During furloughed hours, employees cannot do any work for their employer.
- Employers must confirm to the employee in writing that they have been furloughed.
- Claims may not be made for any day that an employee is serving notice between 1 December 2020 and 31 January 2021.
The government expects that publicly funded organisations will not use the scheme. However, this is an important resource for members working in the independent sector who may be affected by a reduction of work during the coming winter months.
Joanne Galbraith-Marten
RCN Head of Legal (Employment)
More information
For further advice visit our COVID-19 advice guide.
