Furlough changes from July 1st 2020

By June 24, 2020Uncategorized

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.

To do:-

  1. 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)
  2. 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.