Furlough update – June 2020

It was recently announced that the government’s Coronavirus Job Retention Scheme (for furlough grants) will remain open until the end of October 2020.

There are several important changes being introduced. Existing rules will apply until 30/6/2020.

  • Furloughed employees will be able to return to work part time from 1/7/2020 (not 1/8/2020 as originally announced) and the company will be able to reclaim the furlough grant for days not worked
  • The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June. This means an employee would be to be furloughed from 10/6/2020 or earlier to qualify for the grant.
  • From 1/8/2020, the employer will need to contribute part of the furlough pay:
    • Aug – employer pays employer’s NI & Employer’s pension
    • Sept – employer pays 10% of wages  and employer’s NI & Employer’s pension
    • Oct – employer pays 20% of wages and employer’s NI & Employer’s pension

More details here.

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The above is general guidance only and should not be solely relied upon without consideration of other factors which are too lengthy to go into in this article