Flexible furloughing starts on job retention scheme

On 1st July, flexible furloughing was introduced, meaning employees will no longer have to be furloughed for a minimum period of three weeks.

Following the changes to the Coronavirus Job Retention Scheme (CJRS), there is more flexibility to allow claims on a pro rata basis. Employers will be able to permit employees to work some of the week and be furloughed for the rest.

An employee needs to have been furloughed for at least three consecutive weeks between 1st March and 30th June to be eligible for furlough from 1st July. Additionally, after 1st July, employers may be subject to a cap on the number of employees that can be claimed for in a CJRS claim they are able to make.

The CJRS changes have effect from 1st July until the closure of the scheme on 31st October.

Parents returning from statutory maternity leave, paternity leave, adoption leave, shared parental leave and bereavement leave are broadly exempt from the CJRS furlough changes. Therefore, parents who are returning to work over the coming months will be eligible for the CJRS despite the scheme closing to new entrants on 30th June.

Additionally, from 1st August, the level of the grant will be reduced each month. From August, the employer will need to pay employer national insurance and pension contributions for the time the employee is furloughed. For August, the government will continue to pay 80% of wages up to a maximum of £2,500 proportional to the hours the employee is furloughed. For September, the government will pay 70% of wages up to £2,187.50, and for October, the government will pay 60% of wages up to a maximum of £1,875. During these months, employers will have to top up employees’ wages to ensure they receive 80% of their wages up to the £2,500 cap.

Laura Bright, of Harvey, Telford & Bates comments:

“Flexible furlough gives businesses the opportunity to bring back furloughed employees on a part-time basis. This next step of gradually returning to normality for businesses helps them to plan for the next months ahead.”

At Harvey, Telford & Bates we can help assist you on how to plan for the difficult months ahead for your business.

If you would like advice or guidance on flexible furlough, please call us on 01743 462604, or email hello@htbaccountants.co.uk.

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