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Legal Updates

Government has announced specific changes to the furlough scheme

31 May 2020 #Employment


The government has announced the specific of the changes to the furlough scheme:

The level of government support is unchanged until 31 July.

No new employees can be furloughed after 10 June. Claims can be made for those employees up to 30 June 2020 but they would need to have completed three weeks furlough by that date, hence 10 June.

From 1 July, for employees who are already furloughed businesses will be able to ask furloughed workers to work part-time on any pattern and make pro rata furlough claims for the proportion of the week they are not working.

  • Bringing in flexibility before the level of government support drops is a big positive for businesses and is something we have played an active part in getting over the line.
  • The detail of how this will work and what you will have to pay people has not been published. We understand it will work as follows: cap (80%, £2500) minus pro-rated pay = claim.

In August, the government will still pay up to 80% (capped at £2500) per month but employees will have to pay employers NICs and auto enrolment pension contributions. This is a big plus for businesses as it was expected that businesses would have to contribute 20% from August.

In September, the level of government support will be reduced to 70%. We do not have information on whether the capped will be reduced but expect that it will. Employers will have to contribute at least 10%.

In October, the level of government support will be reduced to 60%. We do not have information on whether the capped will be reduced but expect that it will. Employers will have to contribute at least 20%.

The Chancellor has announced that the scheme will not be extended after October.

 

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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Russell  Dann

Russell Dann
Associate

E: rdann@clarkslegal.com
T: 0118 960 4653
M: 0792 014 4165

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