The Furlough Scheme, introduced back in March 2020 by the UK government, is coming to an end on the 30th September. As the country is trying to gain back its financial strength, employers and employees must think about the aftermath of the impact of the pandemic.
The Furlough Scheme is Coming To An End
Back in March 2020, the UK government put in place the Furlough Scheme to help employees keep their jobs in the middle of lockdowns. The government initially paid 80% of the wages of people who couldn’t work, or whose employers could no longer afford to pay with a monthly limit of £2,500. In July 2021, the government’s contribution went down to 70% with the employers required to pay 10% of salaries. And in August and September, the government’s contribution reduced to 60% with employers required to pay 20%.
In July 2020, the government also brought in flexible hours to the Furlough Scheme. This was to encourage employers to bring employees back to work part time. Companies were also given the flexibility to decide the hours and shift patterns of their employees. The government were continuing to pay 80% of salaries for the hours they did not work.
What to do next ?
Final CJRS claims for September can now be submitted and must be made by Thursday 14th October. After that final claim, the Furlough Scheme will no longer be available. Businesses and employees must make decisions on how to move forward. Three options are possible : Employees can return to their jobs on the same terms. Employees can return, but terms and conditions need to be rediscussed. The final option is that the employee could be made redundant.
If you are part of the unfortunate people who couldn’t keep their jobs because of the pandemic, solutions do exist to move forward. If you have been made redundant in your sector, employers in other sectors are looking to hire again. This could also be the moment to launch your own business and decide to start a project of your own.
If you need any help with launching a new business or coping with the aftermath of the end of the furlough scheme, then contact us and we will help you as much as possible.
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