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Government extends Coronavirus Job Retention Scheme to October

Chancellor Rishi Sunak has today extended the Coronavirus Job Retention Scheme (CJRS) until October 2020 as the Government tries to help both companies and workers come out of the lockdown.

Created to ensure that as many companies could continue to pay staff throughout the lockdown period, the CJRS has enabled many businesses to continue trading, and households to remain financially stable.

Announcing the new measures in Parliament today (May 12), Mr Sunak outlined the plan, which will affect the 7.5 million workforce currently on furlough, and their employers. 

 As things currently stand, the government will fund 80% of a furloughed employee’s salary up to a maximum of £2500. This state of affairs will continue until the end of July, allowing businesses to retain their staff as we begin to come out of the lockdown period. 

From August there will be an option to bring back furloughed employees on a part time basis. This part time option will allow the UK workforce to integrate back into society in a way that will reduce the chances of another rise in infections. 

The CRJS is now set to end in October 2020. The scheme has allowed the UK workforce and businesses to endure the lockdown caused by the pandemic, causing as little hardship to all involved as possible. 

Today’s announcement and the introduction of these new measures should create a situation where the economy can begin to recover and the workforce can begin getting back to some semblance of normal, whilst maintaining the safety measures.

Philip Pearson, Employment lawyer at Cartwright King said: ‘Clearly, today’s announcement by the Chancellor will come as a relief to the millions of employers who have had to make the difficult decision to furlough their employees and those employees who have found themselves stuck at home on 80% of their monthly salary. It should mean that large scale redundancies are kept to a minimum and the option of returning furloughed employees on a part time basis seems a sensible way to slowly get the economy back up to speed, whilst keeping infection rates low. 

We will, of course, be keeping a close eye out for additional government guidance which we expect to receive towards the end of May and which should hopefully tell us how his will all work in practice.’

Cartwright King has lawyers in most areas of law, and the current information we are sharing is written by employment lawyer Philip Pearson of Cartwright King.

If you have any further queries around the above topic or otherwise, contact the firm here.

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