Furlough and flexible furlough

Furlough and flexible furlough

BROAD SUMMARY AS AT 25^TH June 2020

Employers are reminded that should they wish to continue to use the Furlough Scheme on a reduced basis as of the 1^st July, a new written agreement or instruction will be required with staff to prove that this was put in place. It is only available for employees who have previously been furloughed between 1 March and 30 June 2020 for at least 3 consecutive weeks.

If the employer is leaving the scheme unchanged, then no further agreement is needed.

Flexible Furlough becomes available from 1^st July 2020 and it means that an employee may return to work part time, and be Furloughed for the rest of the working week. The employee must be paid full pay for any time worked.

There is no minimum or maximum amount of working time.

This changes the previous scheme rule that required that absolutely NO work was carried out for the employer during the period of furlough.

The ability to claim back payments will reduce in a graduated way.

In July, the employer can claim back up to 80% of the pay due during time spent furloughed.

So, if an employee works 2 days, and remains furloughed for 3 days per week, the employer can claim back 80% of the 3 days pay.

In August, the employer can still claim back 80%, but must pay the employer NI and the pension contribution.

In September, the employer can claim back 70% of the furlough pay, but must make it up to 80%

In October, the figure claimable drops to 60%, with the employer paying 20% to top up to 80%