The Coronavirus Job Retention Scheme (CVJRS) or furlough scheme has now been extended until March 2020 and current payment rates will be reviewed regularly but expected to be maintained until the end of the year. This means that the planned replacement Coronavirus Job Support Scheme (CVRSS) for open and closed businesses has been postponed.
The furlough options available will reflect the flexible furlough rules that were in place in August 2020, which makes it more generous than the support that was available in October.
- Employees can be furloughed full-time or part-time;
- They should be paid usual contractual salary for hours worked and the Government will pay 80% of the employee’s salary for the hours not worked (capped at £2,500). As before, employers can choose whether they are able to top-up the salary for unworked hours.
- It is open to all employers, they do not have to have previously used the furlough scheme.
- Employees had to be on the PAYE payroll on 30 October 2020 to be eligible.
- Employers will need to claim for a minimum of 7 consecutive calendar days and will have to pay employers NICs and pension contributions.
Further guidance is awaited and you can read the current announcement here.
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