The UK government’s Coronavirus Job Retention Scheme is designed to support employers to pay the salaries of those employees who take a temporary leave of absence because of the difficulties their employer is facing due to Covid-19. The Scheme is due to come to an end on 31 October 2020, and will continue in a more flexible form from 1 July, with employers being asked to contribute towards its cost from 1 August.
On 29 May 2020, the Chancellor announced that the Scheme will continue in its present form only until 30 June 2020 (one month earlier than anticipated). After that date, the Scheme will continue in a more flexible form until 31 October 2020, with employers gradually being asked to contribute to its cost from 1 August. The new flexible scheme from 1 July can only be used to furlough employees who have been previously furloughed for a full three weeks under the current Scheme which ends on 30 June.
There is guidance for employers on the revised Scheme which was published on 12 June 2020.
The legal parameters of the Scheme are set down in the First Treasury Direction and Second Treasury Direction. We anticipate that a further Treasury Direction will be published for the revised scheme.
Read our Clyde Guide to the Second Phase of the Coronavirus Job Retention Scheme (https://www.clydeco.com/blog/the-hive/article/the-uk-guide-to-the-second-phase-of-the-coronavirus-job-retention-scheme) for a more detailed overview of the revised Scheme and answers to some key questions UK employers are asking.