HR · 12 June 2020

NEWS: Furlough deadline has passed: What options do employers have now?

staff-furlough

This week has been a milestone for UK employers during the coronavirus saga as the deadline has passed for them to put new staff on furlough.

Employers had up until June 10 to put any further employees on the Government scheme.

The deadline news is part of Chancellor RishI Sunak’s overall plan to gradually reduce the furlough scheme, (also known as the Coronavirus Job Retention Scheme), over the coming months.

Currently, employees on furlough receive 80% of their salary up to 2, 500 but are not allowed to undertake any work for their employer.

While furloughing was implemented to combat the economic effects of the coronavirus pandemic, it was intended to be a temporary measure. With over a quarter of the UK workforce, (nearly 9m people), on furlough and its related costs currently exceeding £19.6bn, it’s not surprising that the Government seek to gradually ease its financial burden.

While the Chancellor confirmed last month that the furlough scheme has been extended in its present form until August 2020, Sunak has revealed that employers will be paying towards a portion of their furloughed employees’ wages by October 2020 in a bid to get the economy going, and people back to work.

While the gradual winding up of the furlough scheme might unnerve some furloughed staff, in may stimulate a more lively recruitment sector, saysdean Sadler, CEO at recruitment software platform, Tribepad. He provides commentary on the ‘sector from the employee perspective and what he thinks will happen as lockdown laws ease;


 
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