NOTE: It is now too late to put somebody on furlough for the first time, as 10 June was the last day. But if someone is or has previously been on furlough, they are eligible to continue until the scheme closes on 31 October 2020. However, the 10 June cut-off date does not apply to those who are returning to work after paternity or maternity leave.
Whilst the furlough scheme will have eased the problem of paying wages during the lockdown, the ending of the scheme in October will leave the problem of how to fund those wages.
Even though the government has announced a phased return to work from July, the scheme is structured so that from 1 August there will be a cost to the employer.
Even if sales are slow to pick up, you will still need to pay those increasing wage costs, and it is better to work out now where those funds might come from.
Options might include:
These are just a few options – it is crucial to plan now for the return to work and not wait until the support schemes have ended.