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Employment COVID-19 Update: Employers Contribute to Furlough From Next Month

15 June 2020 #Employment #Podcasts and Webinars


Just before the weekend, the Government released new guidance, updated existing guidance and released a policy paper on how the coronavirus job retention scheme, better known as the furlough scheme, will change from 1 July 2020. In summary, the paper outlines the following:

  • As has already been reported, from 1 July, employers can bring furloughed employees back to work for any amount of time and an y shift pattern. Employers can then claim the pro-rata amount of the 80% of the employee’s salary (up to a maximum of £2500) based on the proportion of hours NOT worked compared to their normal working hours.
  • From August, the government will continue to pay 80% up to the cap for the hours an employee is on furlough, but employers must pay NICs and pension contributions for the time they are on furlough.
  • From September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours an employee is on furlough, but employers must pay NICs and pension contributions and top up to ensure employees receive 80% of their wages, subject to the cap of £2500, for the time they are on furlough.
  • From October, the government will pay up to 60% of wages up to a cap of £1,875 for the hours the employee is on furlough, but employers must pay NIC’s and pension contributions and top up to ensure the employees receive 80% of their wages, subject to the cap of £2500, for the time they are on furlough.

Our podcast on this update can be found here: Employment COVID-19 Update: Employer Contribute to Furlough From Next Month.

 

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Jacob Montague

Jacob Montague
Trainee Solicitor

E: jmontague@clarkslegal.com
T: 0118 960 4613
M: 0790 9964 585

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