Following the Prime Minister’s announcement yesterday evening there have been reports in the press today of a new Furlough type scheme being considered by Rishi Sunak, to be implemented once the current Coronavirus Job Retention Shame ends on 31 October 2020.
However currently, the Government’s formal position remains the same, that the current Furlough Scheme will finish as planned, with no extension or replacement.
One reported possibility put forward by the CBI is based on an employer being able to offer employees at least 50% of their normal hours. The employer would meet the full wage bill for the hours worked by an employee but for non-working hours, the wage bill would be shared, with a third paid by the employer, a third by the Treasury and a third foregone by the employee.
The Trades Union Congress has also proposed a similar scheme, but with employees continuing to receive 80% of their pay for the time they are not working, or 100% if they are on minimum wage.
It will remain to be seen whether either of the above proposals will be formalised and if so, whether they will be utilised by businesses to the same extent as the Furlough Scheme.
If you have any questions about the current Furlough Scheme then please contact a member of the Employment Team on 0116 289 7000.
Categorised in: Covid-19, EmploymentTags: Coronavirus, Employment Law, HR