Government Announces Christmas Cracker Furlough Extension

Many businesses were eagerly awaiting the Government’s furlough contribution review in January 2021.    

To ensure businesses can prepare for the new year the Chancellor has released a Christmas cracker announcement confirming that the Government will continue to pay 80% (up to a maximum of £2,500 per month) of an employee’s salary for the duration of the scheme and that it will be extended for a further month to the end of April 2021.  

The news brings a sigh of relief for many businesses who will now be able to retain their staff over the winter months.

As far as we are aware, the following rules will still apply:

• Employers must still contribute to NICS and pensions
• If employees are on flexible furlough the employer must pay the hours worked
• Employees must have been on the PAYE system on or before 30th October 2020

*Furlough Agreements must be in place before a work pattern commences*

The HR Services team at JCP Solicitors can offer support with this process. Get in touch on 03333 208644 or email law@jcpsolicitors.co.uk