Here to Help: Firms urge for changes to the Job Retention Scheme
Despite the recent extension to the Job Retention Scheme, businesses are urging the Government to rethink the support as they fear it’s a ‘waiting room’ for redundancy.
With eight out of ten businesses expected to furlough, it’s paramount that the scheme is dependable with so many peoples’ careers on the line.
Peter Cheese, Chief Executive, Chartered Institute of Personnel and Development (CIPD), has demanded the chancellor, Rishi Sunak makes immediate changes to protect workers.
He stated, “Urgent decisions must now be taken to make it more flexible and to extend it so employers can continue to protect jobs.”
How does the Job Retention Scheme work?
The Job Retention Scheme allows employers to furlough staff and claim back 80% of their wages up to £2,500 per month.
During this time furloughed staff are unable to work but can conduct training that doesn’t provide any service to generate revenue.
Will changes be made to the Job Retention Scheme?
Suggestions have been put forward to keep the scheme running until September and to allow furloughed staff to work reduced hours.
It seems that something similar to this proposal may be in place, however, nothing concrete has been announced.
Sunak has only hinted that the scheme may be tweaked and scaled back after June, allowing businesses to adjust and for furloughed employees to ‘gradually’ return to work.
How can IRIS help?
The crisis and available schemes are changing at a rapid rate.
To support, we have a COVID-19 hub that houses all the latest news and advice surrounding the pandemic, check it out here.
As for support with furloughing and the Job Retention Scheme, we've put together a handy support page that covers everything you need to know so you can be compliant and correct.