The government’s furlough scheme has been extended from 01 July 2020.

What is Flexible Furlough?

The government’s furlough scheme has been extended from 01 July 2020.

The key changes are as follows:

• The last date an employer can furlough an employee for the first time will be 10 June 2020.  This means that employees who have not been furloughed previously will not be able to benefit from the furlough scheme.

• Currently, the furlough scheme covers 80% wages up to a cap of £2,500 as well as employer National Insurance and pension contributions for the hours the employee does not work.  

• From 01 July 2020 the employees will be able to bring furloughed employees back to work on a part-time basis whilst still remaining on the furlough scheme. It will be up to employers to decide, based on business need, on the hours that the returning employee will work.  The employer will be responsible for paying the employees wages for the hours of work completed.  

• From 01 August 2020, the furlough scheme will cover 80% of wages up to a cap of £2,500 for the hours the employee does not work but the employer will be liable for employer’ National Insurance and pension contributions.

• From 01 September 2020, the furlough scheme will cover 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay employer’s National Insurance, pension contributions and 10% of wages to make up to 80% of the total subject to a cap of £2,500.

• From 01 October 2020, the furlough scheme will cover 60% of wages up to a cap of £1,875.00 for the hours the employee does not work.  Employers will pay employer’s National Insurance, pension contributions and 20% of wages to make up to 80% of the total subject to a cap of £2,500.

Further government guidance is to be made available by 12 June 2020.

Should you require any further information regarding business or employment law, please do not hesitate to contact our Mr Bill Dhariwal, Managing Director, Lawcomm Solicitors, DDI: 01489 864 117, E: bill.dhariwal@lawcomm.co.uk

Please note: The above article was written on 05 June 2020 and does not constitute specific legal advice.