Furlough for Longer – Coronavirus Job Retention Scheme Extended
Key Contact – Claire Knowles
Author – Adam Mcglynn
The government’s Coronavirus Job Retention Scheme (the Scheme) is being extended and will now last until 31 June 2020. The Chancellor of the Exchequer, Rishi Sunak, has today announced that the Scheme’s end date will be postponed to reflect the government’s recent announcement of an extended period of social distancing measures.
The Scheme allows businesses to preserve their employment relationships by reimbursing wage costs of employees placed on furlough leave. The government have previously announced that grants payable under the Scheme can be backdated from the 1 March 2020 which now allows for a maximum entitlement period of four months instead of three.
As part of the announcement Rishi Sunak claimed that the Scheme has controlled the virus’ impact on employment so far and that this extension will continue to protect millions of jobs during the ongoing crisis. The Scheme will continue to be monitored to bring it to an end as soon as possible for the benefit of the country’s economy without jeopardising health and safety.
For more information, please contact our employment team.
Claire Knowles – Partner
Mark Alaszewski – Associate
Rebecca Mahon – Solicitor
Adam McGlynn – Trainee Solicitor