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Furlough Scheme changes announced

On the 29th May, the Chancellor announced reforms to the Coronavirus Job Retention Scheme which will come into effect over the coming months.

The changes include:

10th June 2020:  This is the last day that employers can place employees on furlough for the first time.  From 30th June, the CJRS Scheme will be closed to new entrants and employers will only be able to furlough employees that have already been on furlough for a full 3 week period prior to this date.

30th June 2020:  Claims up to 30th June will be considered as the “Old Scheme” and from 1st July to 31st October will be the “New Scheme”.

1st July 2020 |Flexible Furlough:  Furlough leave will become flexible from the 1st July enabling employers to bring back employees on a part time basis.  The employer will pay in full for days worked and can claim under the CJRS for those days not worked.  The employer will need to decide the hours and shift patterns that the employee will work on their return.

31st July 2020:  Employers must submit final claims for the claim period of the Old Scheme (claims up to 30th June).

1st August 2020 |NICS and Pension Payments:  From the 1st August 2020, employers will have to pay employee’s National Insurance and pension contributions for those on furlough as they are no longer reclaimable via the scheme.

1st September 2020:  From the 1st September 2020, the government will provide a grant of 70% of an employee’s salary (up to a maximum of £2,187.50).  Employers will be required to top-up to 80% up to a cap of £2,500 or more dependent upon agreement between the employer and employee.

1st October 2020:  From the 1st October 2020, the government will reduce the grant to 60% of an employee’s salary (up to a maximum of £1,875).  Employers will be required to top up the employee’s salary to 80% or more dependent upon agreement between the employer and employee.

31st October 2020:  The Scheme will end on the 31st October 2020.

Further details will be published on the 12th June regarding flexible furloughing and how to calculate claims, so please check back to our website for further updates.

If you have any query regarding the furlough scheme, the return of your workforce or indeed redundancies, please contact our employment lawyer, Lisa Aitken on  07960 469988 or email:  LisaA@moore-tibbits.co.uk for a free initial consultation 

Full details of the guidance can be found here

 

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