Following the successful launch of the claims portal on 20 April, the scheme has now been extended in its present form until the end of July.
What is the current position?
The first announcement of the Scheme on Friday 20th March explained that the Government would guarantee 80% of the wage costs of any employees “furloughed” as a result of the pandemic, subject to a cap of £2500 per month. This payment would apply to any employees furloughed from 1 March onwards. The Scheme, which in its original form had a provisional cut-off date of 31 May, was subsequently extended until the end of June, and has now been further extended to the end of July 2020.
On 12 May the Chancellor of the Exchequer announced that the Scheme will continue in a modified form from the beginning of August until the end of October. More details will follow, but we already know that employers will be asked from that point to make a defined contribution towards the salary costs of furloughed staff, who will continue to receive 80% of their normal salary. In addition, the rules of the Scheme will be changed to allow staff already furloughed to return to work part-time.
Government guidance on the Scheme was first published on 26 March and has been revised on numerous occasions since. This now needs to be read together with the Treasury Direction, which sets out the legal basis for the Scheme, released on 15 April, and separate calculation guidance, first published on 17 April.
For more information contact:
Melanie James, Partner, Mills & Reeve, Email: Melanie.James@Mills-Reeve.com
Visit: www.mills-reeve.com
