Announced by the Chancellor on the 12th May 2020, the Furlough Scheme put in place due to the Coronavirus pandemic will continue until the end of October.
However, there will be changes to the scheme with effect from August. The Government will continue to pay 80% of employees’ monthly wages up to £2,500 but companies will be asked by the Government to begin “sharing” the cost of the scheme.
This will see employers offering part-time work to employees where available. The part-time work will be paid for by the employer, whilst the remainder of the unpaid regular monthly wage will continue to be paid through the Furlough Scheme. How this impacts upon employment contracts is unclear.
Whilst this announcement has been a big relief to many companies, the Government are advising us to be aware that there won’t be a “silver bullet” and it is down to companies to work with the Government in supporting each other through this time. Some unions are now pushing for a job retention scheme to be introduced, in order to ensure everyone retains a “decent job”.
For any advice regarding the Furlough Scheme, or if you would like to discuss a business strategy to help your business offer employees part-time work during this time. Please click here to get in contact with us.