On Friday 29th May 2020, Rishi Sunak announced the changes that would be made to furlough leave and the CJRS (Coronavirus Job Retention Scheme). He explained that as from 1st July, there would be a more flexible approach to furlough, to allow for part-time work whilst still benefiting from the scheme.
So, what are the changes to the furlough scheme?
June
From the 1st July, employers will only be able to claim for employees who have been on the furlough scheme for a minimum of 3 weeks previously. This means that, from the 10th June, the scheme will be effectively be closed to employees being furloughed for the first time. Therefore, if you want to take advantage of the scheme going forward, then you will need to furlough any new entrants by this date.
In June, employers will be able to continue claiming 80% of salary up to a maximum of £2,500 (gross) per month – including NI and pension contributions.
July
On 1st July, ‘flexible furlough’ comes into play. Employees who are on furlough now have the ability to return to work on a part-time basis. Any amount of working time or shift pattern can be agreed.
Employees will still receive 80% of their salary up to a maximum of £2,500 (gross) per month. However, employers will need to pay for any hours worked and NI and pension contributions associated with these hours. However, you can claim for hours not worked, up to a maximum of 80% of their salary or £2,500 (gross) per month.
August
From 1st August, the employer is responsible for paying ALL NI and pension contributions for hours worked and not worked. The rest of the scheme remains the same as July.
September
This means that the maximum amount an employer can claim via the CJRS is 70% of salary or a maximum of £2,187.50 (gross) per month.
Employers are expected to pay the additional 10% and all NI and pension contributions for hours worked and not worked (up to 80% or a maximum of £2,500 gross per month).
October
From 1st October, the employee will still receive 80% of salary, up to a maximum of £2,500 (gross) per month, however, the government contribution will be a maximum of 60%.
This means that the maximum amount an employer can claim via the CJRS is 60% of salary or a maximum of £1,875 (gross) per month.
Employers are expected to pay the additional 20% and all NI and pension contributions for hours worked and not worked (up to 80% or a maximum of £2,500 gross per month).
If you would like to inquire about making a Furlough Claim, please contact Nicky@bennewith.co.uk where Nicky will be able to help you.