The CJRS or furlough scheme will close to new entrants on 30 June 2020
Claims from 1 July onwards will be restricted to employers currently using the scheme and previously furloughed employees. This means that the final date by which an employer can furlough an employee for the first time will be 10 June in order for the current minimum three-week furlough period to be met. Employers will have until 31 July to make any claims in respect of the period prior to 30 June.
Flexible furloughing from 1 July 2020
- From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim under the scheme for their normal hours not worked.
- The minimum period for a claim under the scheme to cover the employee’s furloughed hours (that is, the hours the employee is not working by reference to their usual hours) will be a minimum of one week.
- Employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing.
- To claim, employers will need to report to HMRC the hours an employee works and the usual hours an employee would be expected to work in a claim period.
- For worked hours, employees will be paid by their employer in the usual way in accordance with their employment contract and employers will be responsible for paying the tax and national insurance due on those amounts.
- Claim periods will no longer be able to overlap months.
- The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the furlough scheme.
Cost to Employers from 1 August 2020
From August 2020 the level of the grant from the government will be tapered with employers being required to contribute towards the costs of furlough, but furloughed employees will continue to receive 80% of salary (subject to the £2,500 cap) for their furloughed hours.
The cap will be proportional to the hours not worked. Further guidance should provide more information on how this will work in practice. As with the current scheme, employers are still able to choose to top up employee wages above the government grant at their own expense if they wish.
We have summarised the changes in the table below:
|Government contribution: Employer NICs and pension contributions||Yes||No||No||No|
|Government contribution: Wages||80% up to £2,500||80% up to £2,500||70% up to £2,187.50||60% up to £1,875|
|Employer contribution: Employer NICs and pension contributions||No||Yes||Yes||Yes|
|Furloughed wages for fully furloughed employee||No||No||10% up to £312.50||20% up to £625|
|Employee receives (if fully furloughed)||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
Get in touch
Justin deals with all aspects of Dispute Resolution for both businesses and individuals, including including Contentious Probate, Employment Law ( for both businesses and individuals) and Commercial Litigation. This means that he is familiar with the many different courts and tribunal as well as the many different methods for resolving disputes, including alternative dispute resolution such as adjudication and mediation.