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Furlough Scheme updated

Updated: Dec 22, 2020

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. Except that having resisted to the last minute Dishy Rishi caved in and extended Furlough to Jan/Feb and now April 2021.

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 released 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. - we were right


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