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Home > Company News > FOCUS ON HR: What do employers need to know about furlough coming to an end?

FOCUS ON HR: What do employers need to know about furlough coming to an end?

Posted on: 10/09/2021

Furlough has helped secure millions of jobs, businesses and livelihoods across the UK since its introduction at the end of March 2020 due to the coronavirus pandemic. The furlough scheme is in its final phase, due to end on 30 September 2021. There are no signs of any intentions to extend it like before.

Employers using the scheme now, will need to make contributions as follows:

  • Employer contribution wages for hours not worked = 20% up to £625
  • Employer National Insurance contributions and pension contributions

How can you prepare for the end of furlough?

We would encourage businesses to look at the roles they currently have furloughed and whether or not they are viable once furlough ends. This is because:

  1. Understanding your true business model going forward allows you to plan better strategically and financially
  2. There are costs associated with furloughed employees such as the accrual of holiday, length of service and employer contributions
  3. Furlough cannot be used for notice periods
  4. If ultimately employees will have to be made redundant, the costs will become higher as service increases as may also the risk of claims.

Start planning for the post furlough times now

Now more than ever we must use HR practices to help sure businesses futures, stay connected with our people, start the vital conversations, and support our people through uncertainty and change.

The team at ViewHR are encouraging businesses to take proactive steps to understand their true business model going forward so that they can strategically and financially plan past furlough. If your business needs to take steps to make redundancies because furlough is ending, it’s time to start planning and budgeting for this now. Remembering that how you treat employees who exit a business resonates hugely both with those leaving and those staying.

Talk to us in confidence today.

Gemma Murphy, Director of View HR Limited.   | 01425 205390  | 


This article is featured in the September edition of the Dorset Business Focus magazine. Read on the online version here.


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