Changes to Furlough

Employers should take action now regarding how they manage their work force

 

Changes to Furlough

The business community were pleased to hear on Friday afternoon that there will be more flexibility being added to Furlough and it is clear now that the support will be tapered and there will be support up until the end of October 2020.

Employers now need to consider what does their current Furlough Agreements state, how do they need to be revised, what discussions are needed with their teams to consider more flexible ways of working. While more detail is expected on the 12th of June, Guildford HR recommends the business starts to consider how they may bring employees back to work.

The current scheme closes on the 30th of June

The current Coronavirus Job Retention Scheme (CJRS) closes on the 30th June 2020, so the last date someone can commence Furlough is 10th June 2020.

Flexible Furlough will start on 1st July 2020

More information is expected on 12th June 2020. This is good news as this was a month earlier than expected and gives the Employers more options to manage how the hours are managed across the workforce.

It is understood that Employers will be able to bring back employees to work part of their usual hours and be able to claim from the CJRS for the normal hours not worked.

August to October

The new scheme will require Employers to begin contributing to the Furlough payments of their employees.

August

The government will continue to pay 80% of wages up to a cap of £2,500; Employers will be required to pay Employer NICs and pension contributions.

September

The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay Employer NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

October

The government will pay 60% of wages up to a cap of £1,875. Employers will pay Employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

The scheme will end on 31st October 2020

The Chancellor confirmed that the scheme will finish at the end of October.

If you would like to know more or would like HR help and support please call us on 07764 567164 or 01483 362732

Posted in COVID-19, Furlough and tagged .