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Furlough is Back!

posted 09/11/2020 - 15:16

On 31st October, with furlough ending, TemcoUK had put in place arrangements with staff and clients to implement the Job Support Scheme (JSS) – then everything changed.

JSS was out and the furlough scheme was back and, providing a higher level of flexibility and security, was confirmed beyond lockdown.

The Coronavirus Job Retention Scheme (CJRS) will now run until the end of March, with employees receiving 80% of their current salary for hours not worked.

Initially the scheme was to run until 2 December, but now the Government is keeping the support in place longer to help businesses recover and give them the certainty they need in coming months. This was based on the experience of the first lockdown which showed that the economic effects for businesses were much longer lasting than simply the duration of restrictions.

At present employers are not required to make contributions for hours not worked. Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. On average, this accounts for 5% of total employment costs or £70 per employee per month. 

The CJRS is due to be reviewed in January to assess whether the economic circumstances are improving enough for employers to increase their contributions.

The Government asserts that it has acted to protect lives and safeguard jobs with an extraordinary £200 billion support package, with the furlough scheme protecting over nine million jobs across the UK.

There is going to be a reckoning when the bill for this lot turns up though…

About TemcoUK Facility Services

Since 2001 Temco has been operating in the UK in a wide range of environments, from servicing the meticulous demands of medical clean rooms to daily office cleaning in commercial and industrial environments in both private and public sectors.

Combining professional standards with flexible management structures, the company prides itself on offering consistently high results alongside outstanding client service.  Based in west London, TemcoUK Facility Services employs over 450 staff with a turnover in excess of £5m.

 

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