Furlough Scheme Extension Details

August 14, 2022

It was announced that the Furlough scheme would be extended in the UK to October 2020, with some changes in place to help accommodate employees, employers, and the gradual return to work whilst lockdown restrictions ease.Some of the announced Furlough Scheme changes include:

  • The Furlough Scheme has been extended to October.
  • Companies who are already registered with the Furlough scheme will be able to offer part-time furlough opportunities, which was not previously permitted.
  • The Furlough scheme will start to require a contribution from companies for August, September, and October. (An estimated 60% of salary will be covered by the government, with companies being required to top up the remaining amount)
  • Any company seeking to cut more than 100 jobs must run a 45-day consultation, meaning 18 May was the last date employers could start this process.

The Furlough scheme has enabled many companies to continue to have their employees looked after and run their businesses during this pandemic, however, with the announcement of changes to the lockdown more and more businesses are reaching out to employees to request they come back to work.We believe that with the right procedures, and with the fantastic technology we have at our fingertips, that only the essential workers who need to be in an office or in face to face work, should be considered to return. The Furlough scheme is of massive benefit, and has been utilised by many of our clients and contacts to help their businesses continue, without having to make countless members of staff redundant. We have also read that measures are being taken in offices around our usual workplace of Canary Wharf, such as distancing, lift capacity, and many other changes so that those who are coming back to the office, will be at the lowest risk possible.We recommend you consider your options, and if the Furlough scheme is something that is still required, you continue to use the system with the possibility of the other changes such as part-time Furlough, as a way to gradually go back to running your business.

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