By Alex Tomley
The last date to furlough employees for the first time was 10th June 2020.
On the 29th May 2020, the Chancellor announced that the Coronavirus Job Retention Scheme will no longer be available to new members from the 30th June 2020 and from the 1st July 2020, employers will be allowed to bring employees who are currently furloughed back to work at least part-time. The employer will still be able to claim the grant for any hours not worked by the employee. Ultimately, the scheme is due to close on the 31st October 2020 permanently.
The aim is as follows:
1st August 2020 – The government will continue to pay 80% of the employee’s wages and no more than £2,500 per month. The employer will be obliged to pay National Insurance contributions and employer pension contributions.
1st September 2020 – The government will reduce the percentage to 70% of the employee’s wages and no more than £2,187.50 per month. To reach the 80% cap, the employer will need to pay 10% of the employee’s wages including National Insurance contributions and pension contributions.
1st October 2020 – The government will reduce the percentage one more to 60% of the employee’s wages and no more than £1,875 per month. To reach the 80% cap, the employer will need to pay 20% of the employee’s wages including National Insurance contributions and pension contributions.
It is suggested that a written agreement should be required to enter into a flexible furlough agreement. It can last any length of time, rather than a minimum of 3 consecutive weeks like the previous Coronavirus Job Retention Scheme. Employers will only be able to make one claim for any period so they will need to include all furloughed or flexibly furloughed employees all in one claim, even if those employees are paid at different times.
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