An important tweak to the Coronavirus Job Retention Scheme

Following on from Alison Gair’s article last week regarding the updated Coronavirus Job Retention Scheme (the “Scheme”), the Treasury have announced an important further tweak to the Scheme.

We have previously explained that the Scheme will close to new entrants from 30 June 2020 as new flexibilities are introduced to support the economy by allowing furloughed employees to return to work part-time. However, in reality, the last day on which an employer could place an employee on furlough under the Scheme was yesterday, 10 June 2020. This is because as from 30 June 2020, employers will only be able to furlough employees that they have furloughed for a full three week period prior to 30 June 2020. 10 June 2020 was the last date that allowed the required initial three week furlough period to be completed by 30 June 2020.

The Treasury’s tweak to this rule is that parents on statutory maternity and paternity leave who return to work in the coming months will be eligible for the Scheme even after 10 June 2020 cut-off date. However, this will only apply where they work for an employer who has previously furloughed employees.

If you have any questions about the Scheme or any other employment issues, please contact our Employment Team on 0118 912 0300.

This article is written as a general guide and believed correct at the date of publication. If you need further or more specific information relating to your situation, please get in touch with us.