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Coronavirus Job Retention Scheme/Furlough leave

Sheila Attwood Editor's message: The Coronavirus Job Retention Scheme is part of a package of support for businesses affected by the coronavirus (COVID-19) crisis. The scheme is intended to support employers to continue paying employees who would otherwise be made redundant or put on an unpaid period of lay-off.

The scheme will run until 30 September 2021. Up until June 2021, the Government will cover 80% of furloughed employees' wages for the hours they do not work, up to a maximum of £2,500 per month. The employer will be responsible for paying the employer national insurance contributions (NICs) and pension contributions.

During July 2021 the percentage of the employee's wages covered by the scheme will reduce, with the employer required to contribute so the employee will continue to receive 80% of their normal wages. The percentage of the employee's wages covered by the scheme will reduce again during August and September 2021.

The ability to flexibly furlough employees will continue, so employees will be able to work part time. Employers must pay employees in full for the hours they work.

Sheila Attwood, managing editor, pay and HR practice

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