• Malcolm Swallow

Furlough Scheme updated

The initial simple scheme where employers got reimbursed 100% of 80% of the salary of any employee temporarily laid off, finishes at the end of July.

In August onwards there's a new graduated scheme, as the government will gradually pay less support until the end of October when the scheme finally ends.

A key feature of the amended arrangements is that furloughed employees will be able to work for their employer part-time. e.g. at the moment employee A is sitting at home eating crisps and binge-watching Neighbours dawn to dusk all the time. In August you can call Employee A in for 2 days per week. Then you will pay them their normal salary for two days, and get furlough 80% support for the other three days. PS. make sure you have laid on a larger chair for them.

Details of how the transition works each month will be relaesed in mid June.

The new arrangements will sadly bring to a head some employers doubts about the long-term staffing requirements of their business. So there will be some redundancies coming through in the next few months as they take final decisions.

Prediction- in September the government will panic and introduce some new sector-specific schemes to fob off even higher unemployment numbers.


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