Coronavirus (COVID-19) Update 25

You will have seen that, just as employment lawyer’s were opening their Friday night bottle of wine, the Chancellor announced the reforms to the Coronavirus Job Retention Scheme.

His announcement confirmed:

  • 10 June will be the last day an employer can place employees on furlough.
  • 1 July is the start of ‘flexible furlough’ is being introduced.  That will allow employees to work part-time and be furloughed part-time.  You will be able to decide how that will work (in terms of the time split).
  • 1 August is the date that  employers will have to pay employee’s national insurance contributions and pension contributions, and can no longer reclaim them through the CJRS.  (Also my birthday)
  • 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to the 80% (or more, depending on what the employer agreed with the employee).
  • 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875).  Employers will have to top up to 80% (or more).
  • 31 October 2020, the furlough scheme will close


The chancellor also announced that the self-employed grant is being extended, with applications opening in August for a second and final grant.  There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to a maximum of £6,750

Unfortunately the written guidance has yet been issued, and the devil will be in the detail.  I like many other employment lawyers will spend the weekend looking for any changes in the guidance issued.  Once that has been issued I will send you another update.

Just a reminder I will be holding a webinar at 2 p.m. on Monday 1st June that will cover how furlough 2 will work and how to right-size your business as you come out of lockdown.

Please click here to find out more details and to register.