The Government has announced an extension to the widely-used furlough scheme.

The scheme applies to employees who have been furloughed previously and those who have not, as long as they were on the employer’s PAYE payroll by 11.59pm on October 30. The employee can be furloughed on a full-time or flexible basis.

The scheme applies to all employers with a UK bank account and UK PAYE schemes, but does not necessarily apply to publicly-funded organisations - only some partially publicly-funded bodies.

The Government will pay 80 per cent of wages up to a cap of £2,500 for the time the employee is not working. The grant for which the employer is eligible is calculated against the hours normally worked by the employee.

As a minimum to qualify for the grant, the claim must be for a minimum of the hours not worked during seven consecutive calendar days.

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Rebecca Fox

Employers can decide to top up the employee’s wages above the 80 per cent out of their own funds.

The 80 per cent covered by the scheme needs to be paid to the employee in full, with employers paying National Insurance and pension contributions, and the employer must continue to pay the employee for hours worked as normal.

The scheme is set to run until the end of March 2021.

Clinically Extremely Vulnerable Employees

Shielding has not yet been re-introduced. Clinically extremely vulnerable employees should take extra precautions, including limited contact with others and working from home. If working from home is not possible, an clinically extremely vulnerable employee should not go into work. Employers must consider any future guidance, an employee’s particular circumstances and the Covid secure measures in place at work.

Written confirmation/agreements for previously-furloughed employees will need to be reviewed, and further written confirmation/agreements may be required for extending furlough.

Rebecca Fox is a Partner at award-winning law firm VWV, with offices on Clarendon Road, in Watford. Get in touch on 07747 481 989 or