The Coronavirus Job Retention Scheme (the ‘furlough scheme’) is currently due to end on 30 September 2021.
Until that date, there’ll be no change from a worker perspective, with workers on the scheme continuing to receive 80% of their wages for hours not worked, up to the maximum amount of £2,500 per month.
For employers however, from 1 July changes came into force regarding the level of contribution you need to make to your workers’ salaries. Employers must begin contributing to the 80% figure, as the Government begin reducing their contribution. So:
- From 1 July 2021, employers need to contribute 10% and the government contribute 70% to the 80% figure;
- In August and September, employers need to contribute 20% and the government contribute 60% to the 80% figure.
As has been the case, employers may continue to top-up their workers’ salaries beyond the 80% figure.
What happens next?
While there is yet to be a published decision regarding the scheme’s end, no indication has been made that the scheme is likely to be extended. If the scheme is not extended, employers will need to make the difficult decision on whether they can bring back workers onto their full hours, or if redundancies will need to be made.
This is never an easy decision, and no one would wish to make redundancies. However, done in the right way, with a Christlike care for those involved in the process, it can sometimes be the right option for an organisation.
Our Redundancy Pack has been crafted to help churches and Christian organisations follow a fair but personal process honouring both their legal obligations and the people affected. It contains a wealth of information and guidance to help you, whether it is one person in a unique role at risk of redundancy or you are having to make a selection from a group.