Flexible Furloughing

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From 1 July 2020, employers will have the flexibility to bring previously furloughed employees back to work part-time. The Government will continue to pay 80% of wages for any normal hours they do not work up until the end of August.  

 

Employers can decide the hours that employees will work on their return and employees can work as much or as little as needed, with no minimum time that staff can be furloughed for. Employers will be responsible for paying staff wages in full while working.

 

Any working hours agreed must cover at least one week and much be confirmed to the employee in writing.

 

When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of a week. Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and the actual hours worked.

 

If employees are unable to return to work, or there is no work for them to do, they can remain on furlough and employers can continue to claim the grant for their full hours under the existing rules.

 

Throughout June and July the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance and pension contributions for the hours the employee doesn’t work. Employers will have to pay employees for any hours worked.

 

In August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay employers National Insurance and pension contributions.

 

In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours an employee does not work. Employers will pay employers National Insurance and pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500

 

In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay employers National Insurance and pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.

 

The scheme will close to new entrants from 30 June. From 30 June onwards, employers will only be able to furlough employees that were furloughed for a full three-week period prior to 30 June.

 

This means that the final date that an employee can be furloughed for the first time will be 10 June for the current three-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.