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June 2021

REMINDER: ENFORCING ANNUAL LEAVE DURING PERIODS OF FURLOUGH

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As furlough is due to end on the 30th September 2021 now would be a good time to have a look at your employees accrued but untaken annual leave to see if you could reasonably enforce any of this leave whilst your employees are still on annual leave.

To enforce a period of annual leave, you must give your employees written notice of the dates you intend to enforce, with at least double the length of notice as the time you are enforcing. Your adviser will be able to draft this letter for you.

Enforcing annual leave throughout a period of furlough will help you manage and reduce the number of holidays to be taken on your employees return to work and the contribution from the government job retention scheme will help reduce the cost you will need to pay out for these periods of annual leave.

Please note, periods of annual leave which are taken during a period of furlough must be paid at 100% of the employees normal wage/ salary, however you will receive the current contribution from the job retention scheme towards this.

You should remain fair and consistent when enforcing employees to use annual leave to avoid potential claims of discrimination.

Call 01422 822842 for further advice.

 

REMINDER: FURLOUGH CONTRIBUTIONS TO REDUCE FROM 1ST JULY 2021

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The Coronavirus Job Retention Scheme has been extended until 30th September 2021, however like last year, the government plan to reduce the amount of help they will contribute to employers with employees on furlough. From the 1st July the first reduction for this year will come into effect.

Employees will still be entitled to receive 80% of their normal salary/wage to a maximum of £2500 per month  from you whilst they are furloughed, however the government will reduce their contribution towards this, as follows:

 

July

Government contribution towards hours not worked – 70% up to £2187.50

Employer contribution for hours not worked– 10% up to £312.50

 

August

Government contribution towards hours not worked – 60% up to £1875

Employer contribution for hours not worked– 20% up to £625

 

September

Government contribution towards hours not worked – 60% up to £1875

Employer contribution for hours not worked– 20% up to £625

 

Please note, in addition to the above, you can if you wish, continue to top up your employees’ wages above the 80% and the £2500 cap, at your own expense.