Coronavirus Help | General Guidance • July 28, 2020
Furlough Update
Written by Kevin Murphy
The Coronavirus Job Retention Scheme (Furlough) is due to change.
As of 1 August 2020 the contribution to be made by both the Government and the employer will change and will continue to do so each month until Furlough ends on 31 October 2020.
The employee must continue to receive 80% of their pay capped at £2,500, but, the contributions will change as detailed below :-
1 August 2020
Employers must start to pay pension and Employers National Insurance contributions, the Government will no longer funds these contributions. The Government will continue to pay 80% of wages capped at £2,500 for anyone on Furlough.
1 September 2020
The Government will reduce their contribution to wages to 70%, the employer must continue to pay 80% capped at £2,500.
1 October 2020
The Government will reduce their contribution to wages to 60%, the employer must continue to pay 80% capped at £2,500.
1 November 2020
Furlough will have ended and employees should be either back at work, laid off (find our more here) or the employment safely terminated – please contact us to make sure that you stay safe.
You might also like…
Why Every UK Employer Needs an Absence Management Policy Before April 2026
Managing employee absence is one of those HR areas that many businesses quietly muddle through without ever formalising. A quiet word here, a welfare chat there, perhaps a letter when things become persistent. For smaller employers, this informal approach has often...
The Fair Work Agency Is Coming: What Every UK Employer Needs to Know
From 7 April 2026, a new national enforcement body will have the power to investigate your business, issue enforcement notices, pursue civil proceedings against you, and publicly name you as a non-compliant employer. That body is the Fair Work Agency. This article...
Unfair Dismissal Is About to Get Much Easier to Claim: What Employers Need to Know Before January 2027
For decades, the two-year qualifying period for unfair dismissal protection gave employers significant breathing room when managing new starters. A dismissal within the first two years carried relatively limited legal risk for most conduct or performance issues....
