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The government’s Coronavirus Job Retention Scheme will remain open until the end of October.

The furlough scheme is to be extended by a further four months, with workers continuing to receive 80% of their current salary.

As the economy is re-opened, the government are trying to support people to get back to work.

From the start of August, employees who are ‘currently’ furloughed when the March to July period comes to an end will be permitted to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August.

What should employers do?

In particular, as it is the case that employees can only be furloughed over August to October if they were furloughed up to the end of July, employers will need to assess the extent to which they might require support from the JRS over the coming five to six months and plan which employees to furlough and when, accordingly.

This will need to be undertaken in the coming weeks in order to put plans into action for when the new scheme rules come into force.