On 29 May 2020, the Chancellor announced the following:
- From 1 July 2020, furloughed employees will be able to return to work on a part-time basis. Employers will pay in full for days worked and can claim under the CJRS for days not worked, subject to the relevant caps.
- From 1 August 2020, employers will be required to contribute towards the costs of furloughing employees.
- From 1 September 2020, Employers will also be required to pay 10% of employees’ pay, capped at £312.50. The government will pay 70% of employees’ pay, capped at £2,187.50.
- From 1 October 2020, Employers will be required to pay 20% of employees’ pay, capped at £625. The government will pay 60% of employees’ pay, capped at £1,875.
Dont forget, only employees who have been furloughed for a continuous 3 week period before 30th June can be furloughed/part furloughed after 1st July 2020, UNLESS they have been on statutory family leave or a military reservist on a period of mobilisation.
- Employers and employees will need a new signed agreement if the old one had an end date or you will be having them work some of their time (ask your advisor for one)
- The ‘3 week’ minimum furlough will no longer exist, therefore you can consider rotating your furloughed employees or increasing/decreasing the work they carry out throughout this period (with their agreement)
Note – Employees do not have to be given some work, they can remain on full furlough subject to business needs.