This afternoon the Treasury has announced that the Coronavirus Job Retention Scheme has been extended from 31 May 2020 until at least the end of June 2020.
HMRC has now clarified that holiday can be taken during furlough leave and that it must be at normal as opposed to furlough pay.
Under the scheme, the Government will cover 80% of workers' wages if they are put on furlough leave. It was originally open for three months and backdated from 1 March to the end of May. Chancellor Rishi Sunak has also confirmed that the salary scheme will be extended again "if necessary".
The move follows widespread calls from business leaders for greater clarity on the scheme’s duration. According to the British Chambers of Commerce approximately 50 per cent of firms across the country are expected to use the scheme.
Our Furlough Leave Guide for Employers has been updated to reflect the latest announcement. More details and insights into the challenges posed by the global pandemic are available on our coronavirus hub.