The guidance on flexible furlough was released on Friday evening. Here is an update from our partner Nicky Gleadow at The HR Point, who explains what you need to do to use flexible furlough, how to make claims and more…
Essentially it is simple; you can bring previously furloughed employees back to work under the new scheme working whatever hours and/or the days you need them for. There is no minimum period of work for furlough. Good news!
Then comes the calculations on how to claim! Much less simple!
You pay employees for the hours worked and then claim furlough for the time not worked, based on their normal working hours at the last pay run before 19 March 2020. Luckily HMRC have given examples -see here: www.gov.uk/find-examples-to-help-you-work-out-80-of-your-employees-wages/example-of-a-full-calculation-for-an-employee-who-is-flexibly-furloughed
What do you need to do to use flexible furlough?
- Agree with the employee that they will come back to work on the flexible furlough scheme.
- Decide what hours you will need employees to work.
- Make sure you have a fair process for selecting who is coming back and allocating hours
- Confirm the agreement in writing with employees – remember your furlough agreement talks about not being able to do any work while on furlough so this restriction needs to be removed.
- Claims that end on or before 30 June must be claimed before 31 July.
- From 1st July claims can only be made for that calendar month.
- The minimum length of time a claim can be for is 7 days unless it is the start or end of the month.
- Claims can be made a maximum of 14 days in advance.
- Payment will be made within 6 days.
The calculation for flexible furlough is complicated – but there are lots of examples to help – www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages
Also remember you also need to reduce the amount of Employers NI and pension contributions you can claim.
Don’t forget about our FREE service for Members with Nicky Gleadow of The HR Point – www.mia.org.uk/support-for-our-industry-through-the-virus-crisis– please remember to use this if you need it!