Latest reforms to the Furlough scheme have now been released by the Chancellor, Rishi Sunak. Here are the headline points announced at his press conference on Friday 29th May:
The last day that employers can place employees on furlough will be 10 June 2020.
From 1 July, ‘flexible furlough’ is being introduced. This means that employees will be able to work part-time and be furloughed part-time. Businesses will decide how that will work (in terms of the time split).
From 1 August, employers will have to pay employee’s national insurance contributions and pension contributions and can no longer reclaim them through the CJRS.
From 1 September, the Government will only reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee).
From 1 October, the Government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
The furlough scheme will close on 31 October 2020.
The self-employed grant is being extended, with applications opening in August for a second and final grant. There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to £6,750.
If you require any assistance with applying these changes in your workplace, please contact us on 03456 122 144. Please also feel free to forward this to anyone you know in business who these changes might affect.
Consultant Director – Employment Law