29 May - Changes to the Furlough Scheme
On Friday 29 May Chancellor Rishi Sunak announced reforms to the Coronavirus Job Retention Scheme. There will be further updates to the Treasury Direction and the Employer's Guidance but, in the meantime, these are the core points that we are currently aware of:
10 June 2020 will be the last day that employers can place employees on furlough.
From 1 July, 'flexible furlough' is being introduced, so that employees will be able to work part-time and be furloughed part-time. Businesses will able to decide how that will work in deciding which staff they select to work on a different basis (don’t forget you will need to ensure that you enter into new written agreements with staff when any changes are made).
From 1 August, employers will have to pay employee's national insurance contributions and pension contributions and will no longer be able to 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 has 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.
Find out more
If you have any questions about Employment Law during the COVID-19 crisis, it’s time to talk to Couchman Hanson.
We are currently offering you a free, 30-minute call with a Couchman Hanson employment lawyer, where you can get all your questions answered. It’s peace of mind during these uncertain times.
To find out more, call 01428 722189 or email enquiries@couchmanhanson.co.uk