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Flexible furlough – government guidance

Posted on: June 15th, 2020 by Ginny Hallam

Late on Friday the government released further detail on how the new ‘flexible furlough’ will work from 1 July.

Here’s a summary of the key detail. You can also access the full government guidance here

New flexibility

From 1 July, you can bring furloughed employees back to work for any amount of time or shift pattern. You can then claim for the usual hours they haven’t worked and spent on furlough through the Scheme.

You can only utilise the new flexible furlough rules for employees who have previously completed the minimum of three consecutive weeks on furlough. The last day an employee could have been furloughed for the first time was 10 June (this doesn’t include those returning from statutory family leave).

You’ll also need to:

  1. Reach agreement with employees in regards to the new flexible furlough arrangements.
  2. Confirm this in writing in order to make temporary changes to the employment contract (the employee doesn’t need to give you a written response).
  3. Keep a record of the agreement for five years.
  4. Keep a record of how many hours each employee works, and how many they spend on furlough.

You can place employees on flexible furlough for any amount of time, subject to the flexible arrangement being in place for a minimum of seven calendar days.

Your contributions

  1. July – None. Government contributions remain the same.
  2. August – You will need to pay NICs and pension contributions. The government will continue to pay 80% of wages up to £2,500  when employees are furloughed.
  3. September – You will need to pay NICs and pension contributions. The government will contribute 70% of wages up to £2,187.50 and you will need to contribute the remaining 10% up to £312.50 when employees are furloughed. You can decide to top up the employees wages beyond the 80% total while furloughed.
  4. October – You will need to pay NICs and pension contributions. The government will contribute 60% up to £1,875 and you will need to contribute the remained 20% up to £625 when employees are furloughed. You can decide to top up the employees wages beyond the 80% total while furloughed

We’re in the process of updating all of our furlough templates and guidance notes so you’re well prepared for 1 July. If you’ve already purchased, we’ll circulate to you directly, or if you’d like to purchase a copy of our flexible furlough letter (£120+VAT), click here

 

This update is accurate on the date it was sent (15 June 2020), but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.