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Yorkshire Times
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6:00 AM 13th April 2021
business

The Furlough Scheme Extension Debate

 
Kate Hindmarch, partner in Employment Law at Langleys Solicitors reports that in Parliament today there will be a second reading of the finance bill, which would place the tax changes announced in the annual budget into law. Opposition parties to the government have submitted an amendment declining the second reading over concerns around the bill’s ending of the furlough scheme this September.

Kate Hindmarch
Kate Hindmarch
Kate Hindmarch said: “The furlough extension has meant that businesses have been able to continue to keep their employees on retention, helping to stabilise the rising unemployment rate we had seen before the end of lockdown. However, the extension of the scheme to September amidst the easing of restrictions means that some employees face the prospect of being away from the workplace for a further 5 months.

“While the initial position of being off work on 80% pay might have been a novelty, employers may face real difficulties in reintegrating and reskilling their workforce. This could potentially be exasperated by a further extension of the deadline.

“Although, many businesses across the country have been able to open this week following months of lockdown restrictions, the extension of the scheme has afforded them time to evaluate their position and put in place a plan of recovery for the rest of the year. Additionally, enabling employers to be able to keep their employees on retention without having to worry about cost, will allow for a smoother transition following their reopening instead of having to re-hire old workers or hire new workers.

“As businesses are afforded more time to weigh up their options, they should make sure to keep in constant communication with their employees, especially if they are to be kept on furlough following the businesses reopening.”