Chancellor Rishi Sunak has just announced that the Coronavirus Job Retention Scheme will be available for another month until the end of June. He has also kept the option to further extend the scheme if necessary.
Mr Sunak said “With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity. It is vital for people’s livelihoods that the UK economy gets up and running again when it is safe to do so, and I will continue to review the scheme so it is supporting our recovery.”
However, there was a practical necessity behind this extension. As the Confederation for British Industry had highlighted, under Employment Law with the 31st May scheme end date, businesses would have needed to issue redundancy notices in the next week to comply with the forty-five day consultation requirements.
As Dame Carolyn Fairbairn, the Director-General of the Confederation of British Industry, commented companies “can return to focusing on protecting jobs and their businesses.”
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