Insights / 02-09-2020 / Bristol

From 1 September 2020, employers making use of the Coronavirus Job Retention Scheme will need to contribute 10% of a furloughed employee’s salary. This is in addition to covering the employers’ NIC and pension contributions which has been necessary since 1 August. Furloughed employees must still receive 80% of their normal salary (up to £2,500 per calendar month) which employers can choose to top-up to 100%.

Employers can continue to make use of the flexible furlough scheme by bringing furloughed employees back on a part-time basis. The employer must pay for the hours worked and can claim under the scheme for furloughed hours.

From 1 October, the employer’s contribution will increase to 20% before the furlough scheme comes to an end on 31 October.

If your business requires assistance navigating the end of the Job Retention Scheme, such as with bringing employees back to work safely, varying terms of employment, or making redundancies, please do not hesitate to contact our Employment team.