Legal Issues – Budget 2021

The furlough scheme has been extended until the end of September. Rishi Sunak announced this as part of the 2021 budget yesterday. The only change to the scheme is that employers will be expected to contribute a portion of the furlough payments to employees at the rate of 10% in July and 20% in August and September.

Employees will continue to get 80% of their unworked wages paid to them up to a maximum of £2,500 per month. It will also remain possible to engage in a flexible form of furlough in which employees can work part time and are paid for the hours they work by their employer and the remaining unworked hours are paid by the job retention scheme.

Additionally, an increase in the National Living Wage was announced. From 1 April 2021 it will rise from £8.72 to £8.91. This will now apply to workers aged over 23 as opposed to 25.

If you have any questions on any of the issues mentioned in the above article, please contact Alan Sutherland.

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