We trust you are well and managing to get through this short two week shut down in Wales and the forthcoming four week shut down in England.
The scene is changing on a day to day basis and as you are probably aware, the UK Government announced that the Job Support Scheme would not be launched as intended yesterday and have instead extended the Job Retention Scheme, otherwise known as the Furlough Scheme, until December.
This means that you may need to manage this change of process correctly, in agreeing with your staff the process for the forthcoming month until the end of November.
It is important that you manage the process correctly and you need to make sure that you are recording and tracking your staffs furlough status, if using the Job Retention Scheme, in order that you can make a proper claim.
Full guidance has not yet been published and we can only assume that the extension of the Job Retention Scheme will be based on the same criteria as before but, for the month of November we can again make the claim at the rate of 80% of salary for hours not worked and up to a maximum of £2,500 per month.
We understand the Scheme fully applies to Wales, Scotland and England.
As I said guidance has not yet been published, but the details we are aware of are as follows:-
- The Scheme will be more generous for employers than October and therefore, the subsequent costs for retaining employees will be reduced.
- Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500 per month.
- Employers can top up their employees’ salaries.
- Businesses will only have to cover National Insurance and Employer Pension Contributions, which for an average claim amounts to about 5% of total employment costs.
- There is flexibility in the Furlough Scheme in that employees can work on a part time basis, or they can be furloughed full time.
As mentioned, we think it is important that you manage the process correctly, agreeing with your staff how you will manage the process.
As soon as we have more detailed advice, we will advise you accordingly.
Please note we understand the Welsh Minister Mr Mark Drakeford, will be making an announcement later today in connection with the Wales Corona Virus restrictions following the end of lockdown on Monday 9th November.
Parker & Co