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The government has now confirmed detail of how the extended Coronavirus Job Retention Scheme is to be managed from July 2020 until the close of October 2020.
Based on that announcement, the following timetable may be a helpful reminder of rights and obligations regarding furlough leave and salary payments over the next few months:
Initial indications had been that part-time working for furloughed employees would be permitted as from August, and that employers were likely to be required to pay 20% of wages, plus national insurance and pension contributions for furloughed staff, from the same point in time, and so it would seem that the financial impact of such a move has been lessened, and the obligations of government and employer alike tapered, to try to avoid the ‘cliff edge’ scenario for employers, and so hopefully safeguard as many jobs as possible.
Concerns of course still arise. Calculation of figures due to be paid to furloughed staff by employers as from August, once part-time working is permitted, looks like a surefire recipe for a headache (and good luck to HMRC in dealing with applications). Of more impact on employers and employees longer term, even with the measures introduced by the government, there will undoubtedly be some hard decisions being made by businesses once they are required to start contributing again to the salary of staff who remain furloughed.