COVID-19 Flexible Furloughing From July
As part of our ongoing COVID-19 Employment Law updates, this post itemises the change to flexible furloughing from July 2020 and employers contributing from August 2020.
The Government has announced the changes to the Coronavirus Job Retention Scheme (the “CJRS”) which will be implemented over the coming months before the Scheme is due to end in October.
• June & July – The Scheme is staying the same with HMRC paying 80% of salary (capped at £2,500 per month) with employers making no contribution.
• August – HMRC will still pay 80% of salary (capped at £2,500 per month) but employers will now start paying employer National Insurance Contributions and pension contributions.
• September – HMRC will reduce their contribution to 70% (capped at £2,187.50) with employers required to pay 10%.
• October – HMRC will reduce their contribution to 60% (capped at £1,875) with employers required to pay 20%.
Flexible furloughing in more detail
During June the rules on staff not doing any work for their employer remain the same but from 1 July 2020 flexible furloughing will be allowed.
This means, for example, staff could work 2 days a week while remaining on furlough for the other 3 days.
Individual businesses will be able to decide what hours and shift patterns work for them and those employers will be responsible for paying the wages of staff while at work.
Jordans HR services
In these challenges times, what is clear is the importance of employers having access to specialist legal support. We developed our fixed fee service, Jordans HR, to help employers and give them certainty on costs. Whether you have no HR resources or a HR Manager in need of support, we can help with everything from day-to-day staff issues to complex disputes.
Jordans Solicitors – here to support your business
During this period of uncertainty, our Employment department is ready to offer support for both employers and employees.
Whether it’s regarding the CJRS, furloughing, redundancies and/or settlement agreements, we are here to help navigate your business through these difficult times.