The Chancellor announced further changes to the coronavirus Job Retention Scheme on Friday that included the option of bringing furloughed workers back to work part-time from 1 July 2020.
A summary of the key changes to the Scheme that were announced are:
- From 1 July 2020 employers can bring back to work furloughed employees for any amount of time on any shift pattern and still claim for their wages for the hours not actually worked under the Scheme (subject to the applicable limits).
- Employers must agree with their employees any new flexible furloughing arrangement and confirm that arrangement in writing.
- For worked hours, employees should be paid by their employer and these wage costs are not recoverable via the Scheme.
- The Scheme will close to new entrants from 30 June 2020 meaning employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June 2020. This means the final date an employer can furlough an employee for the first time is 10 June 2020.
- From 1 July 2020 the Scheme will only be available to employers that have previously used the Scheme in respect of employees they have previously furloughed.
- From 1 August 2020 the Scheme will no longer cover employer national insurance contributions and pension contributions (to the extent it currently does).
- From 1 September 2020 the grant that can be claimed for a furloughed employee via the Scheme will reduce to 70% of wages up to a cap of £2,187.50 per month for the hours an employee does not work.
- From 1 October 2020 the grant that can be claimed for a furloughed employee will reduce to 60% of wages up to a cap of £1,875 per month for the hours an employee does not work.
Further guidance on the changes to the Scheme is expected in mid-June.
If you would like advice on how the changes to the Scheme may affect your business please do not hesitate to contact a member of our employment team.
Posted on June 1, 2020