Flexible furlough began on 1 July 2020, and means that employers are able to bring furloughed employees back to work for any time and any work pattern, whilst still being able to claim the grant for any hours not worked.
Flexible Furlough
What is flexible furlough? Read our bitesize answer to a big question.
However, there are some important conditions to note. Businesses will only be able to claim the grant for employees that have previously been furloughed for at least 3 consecutive weeks between 1 March 2020 and 30 June 2020. Under normal circumstances, the last day an employee could have started furlough for the first time was June 10 2020.
This differs, however, in cases when an employee is returning to work from statutory parental leave. In these cases, employees may be eligible to begin furlough after the cut-off date, although this is subject to certain conditions, such as whether the employer has previously claimed the grant at all. For further advice on furloughing employees returning from statutory parental leave, follow this link.
Businesses will also not be able to claim the grant for more employees than the number they have claimed for previously.
There are also other changes that are commencing from the 1st July. These are primarily concerned with the level of Coronavirus Job Retention Scheme (CJRS) grant that employers can claim.
A short overview of these changes, and the months in which they occur, is as follows:
- July – The Government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.
- August – The Government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough, and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
- September – The Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
- October – The Government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
Want more information? Further advice can be found here, on the Government website.
In-House HR helps businesses with the necessary HR procedures by taking the strain of people management out of your organisation. Our service not only allows you to centralise your personnel records in one secure place, but also saves you time by providing documents and policies necessary for your business, and customised for your ease. Clocked-In, our absence management system, does more than manage absence. It also provides you with employee performance reviews, a built-in organisation chart, and an emergency roll call, among other features. To learn more about In-House HR and Clocked-In, visit the features pages on our website, or email us at info@in-househr.co.uk.