Employment alert: additional Authorities steerage on the extension of furlough | Lexology

Employment alert: further Government guidance on the extension of furlough | Lexology

The Authorities has printed additional steerage on the extension of the Job Retention Scheme or furlough. Though it beforehand outlined that furlough was to be prolonged for one month, the scheme will now run till 31 March 2021. There can be a overview in January 2021 to determine whether or not staff can be required to make a contribution.

The foundations for the prolonged furlough scheme will be summarised as follows:

Key factors

  • Workers will obtain 80% of their present wage for hours not labored, as much as a cap of £2,500;
  • Though versatile furlough agreements can final any period of time, basically, the interval that you just declare for have to be for a minimal declare interval of seven calendar days;
  • Employers can conform to furlough staff retrospectively, with impact from 1 November. To do that, an settlement have to be made by Friday 13 November;
  • There at the moment are month-to-month deadlines for claims. Claims for durations beginning on/after 1 November have to be submitted inside 14 calendar days of the month they relate to, until this falls on a weekend during which case the deadline is the subsequent weekday.


  • Workers who have been on an employer’s PAYE payroll by 23:59 on 30 October 2020 in addition to any staff who have been made redundant or stopped engaged on or after 23 September, if they’re rehired, are eligible;
  • As earlier than, staff will be on any kind of contract;
  • Neither the employer nor the worker must have beforehand used the furlough scheme to be eligible;
  • The place there was a TUPE switch or change of possession, an employer is ready to declare for workers of a earlier enterprise supplied the staff have had a earlier declare submitted by their prior employer; and
  • Employers can proceed to assert for a furloughed worker who’s serving a statutory discover interval however grants can’t be used to substitute redundancy funds. There isn’t any motive why the grant mustn’t apply to contractual discover durations however two Authorities publications from yesterday are unclear. There are assurances that additional steerage is to comply with in late November.


  • Employers will be capable to declare a grant and can solely be requested to cowl Nationwide Insurance coverage and employer pension contributions for the hours the worker doesn’t work;
  • Employers are nonetheless in a position to decide on to top-up worker wages above the scheme grant, at their very own expense, if they want; and
  • All employers with a UK checking account and UK PAYE scheme can declare the grant.

Versatile furlough

  • Employers can nonetheless ask staff to work part-time (flexi-furlough) and declare the grant for the unworked hours, supplied they hold a file of the variety of hours an worker has spent working and/or furloughed.


  • Workers are nonetheless capable of accrue go away while on furlough and are capable of take go away while furloughed. Any hours taken as vacation throughout furlough go away needs to be recorded as furlough hours, not working hours; and
  • The place an worker often works on financial institution holidays, it may be agreed that that is included within the grant fee. If the worker doesn’t often work on financial institution holidays, the employer should both prime up their typical vacation pay, or give the worker a day of vacation in lieu; and
  • Vacation is paid on the regular charge of pay.

Coaching and apprentices

  • Apprentices will be furloughed in the identical approach as staff. They’ll additionally proceed to coach while furloughed, supplied they’re paid the minimal wage for the time they’re coaching. This implies employers should make up any shortfall between the quantity claimed below furlough and their acceptable minimal wage; and
  • Workers are capable of undertake coaching throughout hours during which they’re recorded as being furloughed so long as the coaching doesn’t generate income for, or present providers to their employer. The place an worker undertakes coaching, they’re entitled to be paid a minimum of their minimal wage.

Non-union representatives

  • Workers who’re union or non-union representatives might undertake duties and actions for the aim of particular person or collective illustration of staff or different employees while on furlough.


  • In all circumstances, employers should verify, in writing, that they intend to put their worker on furlough go away and agree the phrases of the furlough within the typical approach. If selecting versatile furlough, they have to set out how this can work and ensure the settlement is in step with employment, equality and discrimination regulation;
  • A written file of the settlement have to be saved for 5 years; and
  • From December 2020, HMRC will publish particulars of employers which have made claims below the scheme for the month of December onwards.

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