The UK Government has just announced further changes to the Job Retention Scheme (Furlough Leave) – what you need to know:
From 1st July 2020, employees will be able to go back to work and do some work for the employer on a part-time basis. Originally, this was due to be from 1st August 2020.
This also means that the last date that employees can be put onto Furlough Leave is 10th June 2020, if employees are not Furloughed by this date, then they will not be eligible for the scheme. The scheme officially closes for new entrants from 30th June 2020 and you would have therefore needed to have Furloughed employees, for the minimum of 3 weeks prior to this date for them to qualify.
What pay will I receive if I go back part time?
Employers will be paying your salaries for the hours that you are working on a part-time basis. The employer will also decide on what hours you will be working when you return to work.
Employers can still ask you to work full-time, if you were already on a full-time contract before being Furloughed. However, employers can also ask full-time workers to work part-time and stay on Furlough for the rest of your hours. The amount of hours worked/Furloughed can vary each week.
When will the Job Retention Scheme grant stop?
The scheme is running until October 2020. Here how the JRS will work for employers:
- June – July 2020: The JRS will pay out the 80% of employee’s salaries (inc the NIC and pension contributions) (capped at £2500 pm). Top up for salaries is still discretionary.
- August: The JRS will pay out the 80% of employee’s salaries. Employers will be expected to pay the NIC and pension contributions (capped at £2500 pm). Top up for salaries is still discretionary.
- September: The JRS will pay out for 70% of employee’s salaries (capped at £2190 pm). Employers will be expected to pay the NIC and pension contributions, and 10% of the employee’s salaries to make up 80% of the total (still capped at £2500 pm).
- October: The JRS will pay out for 60% of employee’s salaries (capped at £1875 pm). Employers will be expected to pay the NIC and pension contributions, and 20% of the employee’s salaries to make up 80% of the total (still capped at £2500 pm).
How long can employees stay on Furlough?
Employees can stay on Furlough leave for a maximum of three months. The scheme is open until October, but with this new qualifying date, it will not take employees up until October, the scheme is open until October for payroll processing purposes and salaries being paid towards the end of the month.
Redundancies
We fully appreciate this is going to put a financial burden on employers during this time, and anticipate that some employers will have to carry out redundancies. This is understandable and we are here to support employers to make sure they can do it lawfully without any further risk to their business.
If you are unsure of how this works in reality for your business, or need support to draft your Furlough Leave letters, or to plan who should go on Furlough Leave, please get in touch with one of our HR experts: 0843 176 0266 / hello@specialisedhr.co.uk.
Please visit our BLOG page for more information regarding Furlough Leave and making the workplace safe for employees to return.