Coronavirus – Half of all furloughed staff return to work

According to the latest research from the Resolution Foundation, more than half of all workers placed on furlough leave through the Coronavirus Job Retention Scheme (CJRS) are likely to have returned to work now.

Official figures from HM Revenue & Customs (HMRC) state that 9.5 million people have been furloughed at some point since the CJRS was introduced in March.

However, the Resolution Foundation estimates that less than half of those 9.5 million workers remain on furlough leave now, with the analysis suggesting that the number of people furloughed at any one time peaked at 8 million in April.

Dan Tomlinson, Senior Economist at the Resolution Foundation, said: “The Job Retention Scheme has supported around a third of the private sector workforce at some point since lockdown began, protecting family incomes and preventing catastrophic levels of unemployment.

“But with the number of furloughed workers having peaked in late April, it is misleading to say that nine million workers are currently furloughed.

“Over half of these workers have now returned to work as lockdown restrictions have eased. The true figure is below 4.5 million.”

With the CJRS set to phase out in the coming months, many businesses will be considering redundancies and potential changes to working hours.

According to recent research, two in five employers that have placed staff on furlough leave will have to make some redundancies when the CJRS ends, which is why it’s important to seek expert legal advice, to ensure that the redundancy process is carried out correctly and fairly.

From 1 September, employees will have to start contributing to the wages of any furloughed employees, with the grant accounting for 70 per cent of their usual wages, and employers making up the difference.

On 1 October, the grant reduces to 60 per cent, with employers contributing 20 per cent until the scheme ends at the end of October.

For help and advice on matters relating to employment law, contact our expert team at Ardens Solicitors today.


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