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12 May 2020

Beth Baird


The Chancellor Rishi Sunak today announced that the Government’s Coronavirus Job Retention Scheme (CJRS), also known as the furlough scheme, will be extended in its current form until 31 July 2020.

Employers will be able to claim back 80% of their employees’ wages for another two and a half months, up to the limit of £2,500 per employee, with employers’ NI and minimum pension contributions also still covered.

As of the 1st of August, the scheme will enter a transitional phase, with scope for employers to bring back their staff on a part time basis. It is anticipated that from this point on the burden of paying employees’ 80% wages will be covered by both the employer and the Government. The levels and timing of the reduction in the Government grants to employers have not yet been disclosed, but it is widely expected that there will be a phased reduction in the amount contributed by the Government. The lower level of subsidies would be introduced as the economy gathers momentum and employees are gradually reintegrated into the workforce in response to increases in activity levels across different industries and sectors.

This is good news for employers, as it provides greater flexibility in managing their employees’ return to work, and affords time to plan for what may well be very different business models in the ‘new normal’ and socially-distanced world of Covid-19. At 3CS we know that these are difficult and unpredictable times for employers, but we can help you find the optimum solutions to those complex employment law issues you may be facing.

3CS is operating a meet your lawyer programme with free half an hour consultations available on employment law issues relating to Covid-19. Please contact your usual 3CS consultant.

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Solicitor/Director Employment

Beth Baird