What a difference a few days makes. So on Friday, we were talking to you about the new Job Support Scheme (JSS) starting on 1st November 2020, only to discover 24 hours later that we are entering National Lockdown from Thursday 5th November and that Furlough (the Coronavirus Job Retention Scheme to give it it's full name) will be extended for a further month.   

The Furlough scheme will revert to paying 80% of wages with employers only having to pay the pension and employer's National Insurance costs for this period, providing much-needed support to businesses across the country. This means that the JSS scheme is currently postponed until the Furlough scheme ends. 

So what do you need to do?  

If your business is required to close or you are experiencing a decrease in demand; and you previously used the Furlough scheme; you need to write to your employees to inform them that they will be back on Furlough with effect from Thursday 5th November 2020 for a further month and get them to sign the letter to say that they agree to do so.  

If you have been fortunate to weather the storm up until this point, but now need to use the Furlough scheme, don’t worry, you still can. You will be able to claim for any employees who are on your PAYE payroll at 23:59 on 30th October 2020. However, if you have not used the scheme before, you must write to employees to seek their agreement to be placed on Furlough.   

Any changes you need to be aware of?  

The government website indicates that the rules of the Furlough scheme, including the ability to apply Flexible Furlough, will remain broadly the same as before and further guidance will be published.  

Don't forget… 

Although we are reverting to Furlough, we believe the information we provided in Friday’s blog regarding the Job Retention Bonus and other ways to reduce costs are still valid. The government is also providing further Business Grants for businesses that have to close that may go a little way to helping get through the challenges ahead.  

Of course, if you have any urgent questions, please do not hesitate to get in touch with one of the Dakota Blue Team who will be happy to help.