Flexible Furlough

What’s Changing?

The Government has announced that from 1st July, the furlough scheme is changing to a flexible scheme, where employers can bring furloughed staff back to work for any period of time, on any shift pattern, whilst still claiming a grant for the hours not worked.

The Government has also announced that from 1^st August, the grant that employers receive will reduce as follows (click here for the Government’s announcement):

• For June and 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.

• For 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.

• For 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.

• For 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.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

The Implications And Our Advice

The Government’s flexible furlough scheme is clearly more complicated and the grants are diminishing, which means that many employers will now be considering making employees redundant.

This is clearly a difficult time for both employees and employers and it’s essential that you contact us straight away if you think that you’re at risk of redundancy so we can ensure that you’re subject to a fair process. Our Advice Team is available 24 hours a day to support and advise you. Call us on 01234 716005 (choose Option 1).

If you have already been made redundant and you’re looking for a new job, remember you can use our professional CV writing service: it’s free of charge.