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Coronavirus Job Retention Scheme extended until the end of October 2020

On 12 May 2020, the government announced that its furlough scheme would be extended until the end of October 2020.
The scheme will continue in its current form without any changes until 31 July 2020. Between 1 August and 31 October 2020, employers will have the flexibility to return staff to work on a part-time basis.

The government published guidance for employers on the Coronavirus Job Retention Scheme when it was first introduced in March 2020 and separate guidance for employees. Both sets of guidance have been amended several times since then, most recently on 14 May 2020.

There is also a step-by-step guide for employers on how to claim through the scheme, guidance on how to work out 80% of wages, information on claiming back Statutory Sick Pay and a Treasury Direction under the Coronavirus Act 2020 which sets out the legal framework for the scheme.

Key latest developments

  • The Chancellor announced that the Coronavirus Job Retention Scheme will be extended until 31 October 2020 with some added flexibility for employers from 1 August 2020.
  • From 1 August 2020, employers will be able to bring employees currently on furlough back on a part-time basis. At this point, however, employers will be required to make a contribution towards the salaries of their furloughed staff. Employees will continue to receive the 80% of their current wages, up to £2,500 a month.
  • The government will release further details of the extension of the scheme to 31 October and how this will be implemented by the end of May 2020.
  • The government has released guidance on holiday entitlement and pay during coronavirus which includes the government’s view on holidays and furlough.