You will no doubt have heard the announcement on Friday that the Government is amending furlough leave to be flexible from 1st July 2020. This is good news as it will allow previously furloughed workers to be brought back to work on a part-time basis until the business can support them on their normal hours or the scheme ends (or is amended again!).
Here is an update from our partner Nicky Gleadow at The HR Point:
How will it work?
- From 1 July, the scheme will only be open to previously furloughed workers and employers who have used the scheme.
- The last date an employee can be furloughed for the first time is 10 June (to allow 3 weeks furlough under the old scheme).
- Employers will need to pay full pay for hours worked and claim for the time not worked as furlough leave.
Employers contribution to costs
The Government also announced a very gradual introduction of employers contributions:
- 1 August – employers will need to pay the Employers NI and pension contributions (for some the NI may be covered by the Employment Allowance).
- 1 September – employers will pay Employers NI, pension and 10% of the furlough pay
- 1 October – employers will pay Employers NI, pension and 20% of the furlough pay.
The cap of £2500 furlough pay will remain for the total 80% not the government contribution, so the government will pay a maximum of £2187.50 in September and £1875 in October.
Further guidance on how to calculate claims is expected by 12 June from HMRC.
What do you need to do?
We would recommend that you start planning your staffing requirements and talk to your employees to see what they can do, remember some will be shielding and some will also still have children off school so may not be able to come back to work.
Where your furlough leave agreement states that furloughed people can not do any work for you (which the guidance required to be stated!) you will need to issue an ammendment letter for those coming back on flexible furlough leave.
You also need to make sure anyone you want to put on flexible furlough has been furloughed from 10th June at the latest.
As ever we are here to help you so please contact us if you need any advice.
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!
Here is the full Government announcement which also includes details on the Self-Employment Support Scheme: www.gov.uk/chancellor-extends-self-employment-support-scheme-and-confirms-furlough-next-steps