Extension to Job Retention Scheme & Business Closures

Over the weekend, the Government have made announcements regarding an extension to

the Job Retention Scheme and the closure of certain businesses. Below is a brief update on the current position.

Extension to Job Retention Scheme

The existing Job Retention Scheme which was due to end on 31 October 2020 and has now been extended to 30 November 2002 (and possibly later – at the time of writing the Government’s guidance was last updated on 5 October 2020!).

Under the terms of the extended Job Retention Scheme, the business support has been improved and reflects the terms of the scheme on 1 August 2020. The Government will fund 80% of the employees wage up to £2,500 per month and the employer will be responsible for payment of the employer’s pension and national insurance costs.

To be eligible for the extended Job Retention Scheme the employee must have been included on an RTI submission made on or before 30 October.

You must ensure that any employees who are to be retained on the furlough scheme are covered by a furlough leave agreement. Many agreements may have expired automatically at the end of October 2020 in line with the terms of the original scheme.

If you made an employee redundancy at the end of October, it is expected that you will be able to reemploy those staff and furlough them as you were allowed to do in March, however further guidance is awaited and you should not reengage staff until this is confirmed.

Further details are expected shortly. The limited details provided to date are available here.

Delay to Coronavirus Job Support Scheme

The previously announced Job Support Scheme will now start on 1 December 2020, subject to any further extensions to the Job Retention Scheme.

Business Closures