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COVID-19: Update on the Furloughed Employee Scheme

 

Following the Chancellor’s announcement on 29 May about changes to the Job Retention Scheme from July 2020, updated government guidance has now been published. The main changes are outlined below:

  • From 1 July, employers can only furlough employees that have previously been furloughed for a full three-week period prior to 30 June.
  • Flexible furloughing will be introduced from July. Employees can work part time and be furloughed for their remaining hours. Hours that are worked must be paid by the employer at 100% of normal pay. The furlough pay will be calculated as a percentage of the hours not worked. The working pattern can change weekly.
  • From July, the total number of furloughed employees that can be claimed for at any date cannot exceed the maximum number claimed for in any claim period to 30 June. (There is an exception for employees returning from statutory parental leave).
  • All claims under the scheme to 30 June must be made by 31 July.
  • The amount that an employer can claim will be gradually tapered down. From August, employers will bear the cost of NI and pension contributions. In September, only 70% of hours not worked can be claimed and in October, this will reduce to 60%. Employers will top up to 80%.
  • The scheme will finish on 31 October.
  • Arrangements in working patterns will need to be confirmed in writing and all paperwork should be kept for the required retention period of six years.

Further guidance from our partners is available here:

For updated guidance, refer to Government Guidance on the COVID-19 Job Retention Scheme.

 

Lunchtime webinar with Mark Jones and Gemma Herrick of Edward Connor Solicitors

 

If you missed our lunchtime webinar on Employment matters, including updates to the furlough scheme and covering what to do if you have no work for your staff to return to, then the recording is available here:

 

 

 

* This webinar was recorded on 23rd June 2020. All the information and advice shared was relevant to the challenges being faced during the COVID-19 outbreak. Please ensure you check this advice is in line with current government advice. Whilst every care has been taken in the preparation of this recording, Stewardship cannot be responsible for action taken or refrained from in reliance thereon. It is recommended that appropriate professional advice be sought in each relevant individual circumstance. 

 

Links to information referred to in the webinar can be found below:

 

Stewardship COVID-19 webpage

Edward Connor Solicitors factsheet on redundancy

Edward Connor Solicitors Redundancy Pack

Government guidance on COVID-19 retention scheme

Government guidance on staff redundancy

ACAS guidance on redundancy 

ACAS guidance on responding to a flexible working request