Job Retention Scheme (Furlough)- 16.06.2020 Flexible Working Update

The job retention scheme has been evolving and changing over the last couple of months. We sent details of the position as of last week and there has been some changes regarding the flexible working hours, including:

  • To be eligible employees, they must have been furloughed on or before 10 June 2020 for a minimum of 3 weeks
  • There is no minimum length with regards to furlough. Previously an employee had to be on furlough for a minimum 3 week period, from 1 July there is no minimum period (see below re submissions)
  • Claims submitted to HMRC for the grants must be for a minimum 1 week period and not cross calendar months.
  • The maximum number of employees included in a furlough claim is limited to the maximum employees included in claims pre 30 June.
  • The employer is responsible for paying the staff costs for the hours worked and the grants limits are apportioned appropriately
  • Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours

The above is a basic summary and the calculations and decisions to submit claims/put people on furlough is much more complicated and we suggest you contact us with any queries or planning.