The government has now issued some further guidance regarding the Coronavirus Job Retention Scheme and the changes which will take effect from the 1st July 2020.
The update by and large confirms the changes identified in our furlough update article dated 1st June 2020.
The updated guidance is readily available on the government website https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme although we have summarised the changes below:
Changes from 1st July 2020
- Employers can bring furloughed employees back to work for any amount of time and any work pattern whilst still claiming the grant for any hours not worked.
- Employers are required to agree the new flexible working arrangement in writing with the employee. The agreement must be consistent with employment, equality and discrimination laws and a copy be retained for 5 years.
- Flexible furlough agreements can be for any amount of time and do not need to be for a 3 week minimum period as previously required.
- Only employees that you have successfully claimed furlough for previously will be eligible for more grants under the scheme, meaning they must have been furloughed for at least 3 consecutive weeks between 1 March 2020 and 30 June 2020
- Therefore any employees furloughed for the first time after 10th June 2020 will not qualify for further grants
- The maximum number of employees that you claim for cannot exceed the maximum number of employees you have claimed for on any prior claim.
Changes from 1st August 2020 onwards
- From 1st August employers will be asked to contribute towards the cost of your furloughed employees wages by paying the Employers National Insurance and pension contributions.
- From 1st September the Government will pay 70% of the employee wage up to a cap of £2,187.50. In addition to the pension and national insurance, employers will be required to top up the wage to ensure that the employee receives 80% of their salary to a maximum of £2,500
From 1st October the Government will pay 60% of the employee wage up to a cap of £1,875. In addition to the pension and national insurance, employers will be required to top up the wage to ensure that the employee receives 80% of their salary to a maximum of £2,500
Should you require any assistance with this or any other matter please feel free to contact us.
