COVID-19 Update: Furlough Extension for New Parents
As of last month, the Coronavirus Job Retention Scheme (CJRS) was extended to October 2020 even though it was only intended to last until 1st July 2020. When this extension was announced, this also included the introduction of some furlough flexibilities, being that workers could start returning to work on either a full or part-time basis whilst on furlough. These amendments and additional provisions were set out in a further bid to support the UK’s economy during the pandemic.
A new update to the CJRS was proclaimed by Rishi Sunak, Chancellor of the Exchequer, on 9th June 2020.
“When I announced these changes to the furlough scheme last month, I was clear that we wanted to do this in a fair way, that supports people back to work as the country begins to re-open following coronavirus.
But for parents returning from leave, their circumstances has meant that they are still in need of support, and I’m pleased that they will be able to receive the financial assistance they and their family will need.” – Rishi Sunak, Chancellor of the Exchequer.
Individuals on maternity and paternity leave and who are scheduled to return to work in the next coming months are now eligible to be furloughed by their employer. The condition of this new update is that the individual’s employer must have already furloughed other employees previously.
As lockdown restrictions are gradually being eased with retail shops opening on 15th June 2020 and other social and retail outlets are scheduled to open as of 4th July 2020, this is a means of encouraging employees to return to work. In attempt to begin the process of economic recovery as a result of the coronavirus, this ensures that individuals are guaranteed financial assistance whilst more business operations are resumed to kick start the economy.
Further guidance on this new extension is due to be released in due course.
Should you have any queries regarding the above information or if you are an employer or employee and require legal assistance, please get in touch with a legal professional at Hudson McKenzie via email at email@example.com or by telephone +44(0)20 3318 5794.