Furlough scheme remains open


The furlough (Coronavirus Job Retention Scheme) has not been changed and remains open until 30 April 2021.

Author: Kiril Moskovchuk
Reading time: 2 minutes

This article is 1 year old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

It is unlikely that the third lockdown will not impact on the car sale figures and consequently, on the dealers’ ability to sustain the payroll. 

The furlough (Coronavirus Job Retention Scheme) has not been changed and remains open until 30 April 2021.

The scheme will continue to subsidise 80% of wages to the cap of £2,500 per months for employees on furlough, the employer pays NI and pension contributions. 

The furlough remains flexible and the employer and employee may agree any pattern of work hours, which will be paid in the normal way, with the remaining balance of unworked hours to the number of usual worked hours being covered by the furlough scheme.

A furlough claim may be made for employees who were employed on 30 October 2020 and remain in employment, as long as there is a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.

As an exception, if someone’s employment was terminated (including by redundancy) on or after 23 September 2020, this employee may be re-employed and placed on furlough. This applies as long as the employee was employed on 23 September 2020 and a PAYE RTI submission to HMRC was made between 20 March 2020 and 30 October 2020 with payment notification in respect of this employee.

The recent guidance from the government concerning the third lockdown published on 4 January 2021 advises that employees who are clinically extremely vulnerable should not attend work. These employees may be put on furlough, which should be given careful consideration.

As a reminder, for employees to be placed on furlough, their employment contract should be varied by agreement, a confirmation of this variation should be provided in writing and a copy of this confirmation should be retained for 6 years.

To avoid ambiguity, we suggest an agreement should be made in writing for the employee to be placed on furlough and variation of their employment contract accordingly. The templates below may be used for this agreement.

Kiril Moskovchuk

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.