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COVID19 - Job Retention Scheme Update - 29 May 2020

As expected, there is to be a tapering off in the support being provided under the Job Retention Scheme, however it appears that the Chancellor has listened to the concerns from businesses about how quickly they will be able to emerge from lockdown and the tapering off is at a much smaller level that some were anticipating.

Whilst there will be an ability for some workers on furlough leave being able to return to their old jobs on a part time basis, we don’t have any real detail on how this will impact on the right to receive furlough pay and how it will work in practice (on the basis that previously the minimum period for furlough leave was 3 weeks).

As indicated earlier this month, from August, there will require to be a contribution from employers to the cost of those employees on furlough leave, initially being required to cover National Insurance and pension contributions.

From September, employers will be entitled to reclaim 70% of salaries (up to a cap of £2,190 per employee) and in October the maximum will be 60% (up to a cap of £1,875 per employee).  During those months, employers will be required to top up the salary to 80%.

It does appear, unfortunately, that there is no different treatment depending on the sector you operate in and some, particularly those in hospitality, are concerned that it will take them far longer to emerge from lockdown.

As always, once the general announcement has been made, there will be updated guidance from the Government and HMRC and we will continue to update you when any further information comes out.

If you have any questions on how this may impact on your business, then contact one of our employment partners, Stuart Robertson (srobertson@gilsongray.co.uk) or Graham Millar (gmillar@gilsongray.co.uk).

The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.

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