British Government Extends Furlough Scheme to End of June

Andrew Cummings
May 27, 2020

In particular, workers employed as of Feb 28th, but who were laid off or stopped working after then but pre-March 19th, are now eligible if the employer rehires and furloughs them. The whole thing is absurd. An employer can only reclaim expenditures through the CJRS when an employee is furloughed.

"It's absolutely clear that these vital support systems must stay in place until it's safe for people to return to work and we can begin to restart and revive our economy".

Interestingly, the Directive doesn't mention the public sector at all.

I will continue to review the scheme.


Once placed on furlough, an employee will not be able to work for their company but they will have some of their income protected. The guidance advises employers that if a non-furloughed employee becomes ill, needs to self-isolate, or needs to be shielded, an employer may qualify for the SSP rebate scheme, which enables the employer to claim up to two weeks SSP per employee. This suggests that employees on sick leave (which will include those required to self isolate) can only be furloughed once that period of sick leave has ended - even if you have not paid them SSP.

"More importantly for ContractorUK readers, is the update on the furloughing of a director", says the expert, Rebecca Seeley Harris, the founder of ReLegal Consulting.

With regard to employees on long-term sick leave or those that are being shielded, it is at the employer's discretion as to whether they are furloughed. We think this is therefore created to address the 14-day self-isolation period during which employers can reclaim SSP from the Government and that furlough in respect of such employees, can only begin after this SSP period is over.

It's really hard to reconcile these two statements and it's not clear whether employers can (with the employee's agreement) bring SSP to an end earlier than they might otherwise have done in order to furlough them.


The government's furlough scheme will be extended for a further month, the Chancellor confirmed today.

The furlough initiative, which was due to end on May 31, will now run until June 30 2020. It will help pubs struggling through the crisis, who are key employers in regions and communities across the whole of the UK.

The Direction provides detailed guidance about how to calculate furloughed pay.

He added: "Where an umbrella operates with a salary equal to NMW and a discretionary bonus the bonus is excluded - in my opinion". " "This includes wages, past overtime, fees and compulsory commission payments" (meaning contractual commission payments)". Should these be included or not?


That extension should mean that more than 200,000 more employees could benefit than under the scheme as originally set out.

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