UK & Europe
This guidance note takes you through some of the issues employers need to consider in relation to the second phase of the government's Coronavirus Job Retention Scheme which is designed to help support employers pay a large proportion of the salaries of furloughed employees.
The first phase of the Scheme (the Original Scheme) was announced by the Chancellor on 20 March 2020 to pay 80% of employee wages up to a cap of £2,500 per month. On 29 May 2020, the Chancellor announced that the original Scheme would continue in its present form only until 30 June 2020 (one month earlier than anticipated). After that date, the Scheme will continue in a more flexible form until 31 October 2020 (the Flexible Scheme) with employers gradually being asked to contribute to its cost from 1 August.
From July onwards the Flexible Scheme is limited to employers who have previously used the Scheme and previously furloughed employees (with the exception of employees returning from family leave). This means that the last date on which employers could furlough employees for the first time was 10 June 2020. On 12 June 2020 the government published guidance in respect of the Flexible Scheme.
PLEASE NOTE: There are complexities within many of the areas covered by this note, and there is a lack of clarity in some of the guidance from the Government. This note isn't, therefore, intended to amount to legal advice, or guidance on specific circumstances – but hopefully it will be very useful to sign-post issues and move consideration forward.