UPDATE: Job Retention Scheme

Following calls from various stakeholders amid uncertainty around the ‘cliff edge’ of the Job Retention Scheme, the Chancellor has announced updates to the measure with an emphasis on greater flexibility and an extension to 31 October. 

In terms of implementation, the current position is that the scheme will continue unchanged until 31 July with amendments to be introduced from 1 August.

Among these amendments is expected to be the ability for employees to return to work part-time (as opposed to the current ‘all or nothing’ policy), with employers paying staff for days worked and the government paying them for days furloughed.

This is intended to provide greater flexibility to both employers (who may be experiencing fluctuating demand) and employees (who may have obligations such as childcare) and remove decisions needing to be taken around long-term furlough arrangements.

The Chancellor has confirmed the amount received by furloughed employees will remain at 80% up to the £2,500 maximum, however has also signalled that businesses may be asked to ‘share the cost’ once the changes kick in.

Indications suggest this may be via a reduction in the amount the government provides to perhaps 60% and a contribution by the employer to make up the remaining, although this is yet to be confirmed.

Detailed guidance on the changes are due to be released by the end of May, and we will of course provide clarity as soon as we have it.

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