On Friday 29th May, the Government set out further clarification of how the Job Retention Scheme is to be amended in the coming months, in order to support businesses returning staff back to work.

The update features improved flexibility to bring furloughed employees back part time from July, and a new taper requiring employers to contribute modestly to furloughed salaries from August

Should you want to review the latest Scheme details yourself please follow this link: www.gov.uk/government/news/chancellor-extends-furlough-scheme-until-october

 

  1. What Has Changed?
    • Flexible furloughing
      • From 1‌‌ July 2020, you will have the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August
      • If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
    • From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work.
      • For June and July the government will continue to pay 80% of people’s salaries;
      • From 1 August onwards, the scheme will no longer cover the cost of employers’ National Insurance nor pension contributions applicable to the grant.
      • In the following months, businesses will be asked to contribute (see below), but crucially individuals will continue to receive 80% of salary covering the time they are unable to work.
    • It is important to note that the scheme will close to new entrants from 30‌‌ June.
      • Employers will only be able to claim under the scheme going forward if they have previously claimed under the pre-1 July scheme.
      • From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30‌‌ June.
      • This means that the final date that you can furlough an employee for the first time will be 10‌‌ June for the current three-week furlough period to be completed by 30‌‌ June.
      • Employers will have until 31‌‌ July to make any claims in respect of the period to 30‌‌ June.
    • There will be a new maximum limit to the number of staff who can be included on a claim, based upon the maximum staff ever included in a single claim under the original scheme.
    • The Scheme will end on 31 October 2020
    • Further support for employers on how to calculate claims with this extra flexibility will be available by 12‌‌ June, including webinars and detailed online guidance.
      • For information about how to claim, go to GOV‌.‌‌UK and search ‘Coronavirus Job Retention Scheme’.

 

  1. Part Time Working Under The Job Retention Scheme

From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time.

 

  1. How Will The Job Retention Scheme Change Over The Coming Months?

The scheme updates mean that the following will apply for the period people are furloughed:

 

  1. Further Points To Note

There are some other changes that the “new” Scheme introduces: