Bespoke HR Consultancy
The Chancellor, Rishi Sunak has today announced new measures for businesses which are a significant change and which will give businesses and people across the UK certainty over winter months.
THE JOB RETENTION SCHEME (KNOWN AS THE FURLOUGH SCHEME) WILL NOW BE EXTENDED UNTIL THE END OF MARCH – PROTECTING MILLIONS OF JOBS ACROSS ALL NATIONS
Workers across the United Kingdom will benefit from increased support with a five-month extension of the furlough scheme into spring 2021, the Chancellor announced today, 5th November. Employees will receive 80% of their current salary for hours not worked.
There are currently no employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. For an average claim, this accounts for just 5% of total employment costs or £70 per employee per month. This extension will be reviewed in January 2021.
Companies who made staff redundant now have the opportunity to bring back redundant employees and re-Furlough them. This applies to employees who were made redundant after the 23rd September 2020. This could put some businesses into a better situation if they can be fully operational in the spring of 2021, by having employees available.
THE GOVERNMENT ALSO ANNOUNCED: