FFS! Flexi Furlough Scheme what does it mean and how does it work?
As you may have heard, the Flexi Furlough Scheme (FFS (yes, we know!) is coming into force from 1st July 2020 and employers are now thinking about how that will work.
So what does it mean to you?
The Government’s updates have required some wading through, but we can update you on the main points. These are as follows:
There is no minimum Furlough Leave (FL) period, so the three week rule, won’t apply from 1st July 2020. However, that does not mean that employers can submit daily claims under the Coronavirus Job Retention Scheme (CJRS), through the HMRC portal. The minimum period employers can submit claims for, is weekly. That means that companies can submit more than one claim a month, but only on weekly basis.
With the introduction of the FFS, employers will no doubt be wanting to put rotas in place to set out which hours employees can work, or be furloughed for, if they want to take advantage of the FFS. Part of that will involve looking at how the CJRS applies in that situation.
How do you calculate how much employers can claim for under the FFS?
Calculating how much employers can claim for is a little complicated. However, essentially, from 1st July 2020, companies will be able to claim a prorated amount of percentage of salary, (subject to what the Government will contribute, as this will start to change from August), based on the proportion of hours not worked out of the employee’s normal working hours.
What are “normal” working hours?
To help understand this, normal working hours are what staff were employed to do prior to 19th March 2020, so if they’re fixed, employers just use those hours.
To calculate the normal working hours for those with variable pay, companies can either: take the average number of hours worked in the tax year 2019 to 2020; or the corresponding calendar period in the tax year 2019 to 2020, whichever is the higher figure.
If you’d like some worked examples, the Government have published some here: https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/example-of-a-full-calculation-for-an-employee-who-is-flexibly-furloughed.
As mentioned above and explained by Tollers Head of Employment Rebecca List, in her article published on 1st June 2020, which can be seen here: https://www.tollers.co.uk/latest-furlough-leave-update/, the Furlough Leave scheme is changing, so that from 1st August 2020, employers will have to start contributing to the cost of staff on FL. Rebecca’s article summarises those changes.
We know that these changes have meant that companies are turning now to redundancies. If you need any help or support with this…talk to Tollers on 01604 258558 we’re here for you. We also have a useful toolkit, called Redundancy Manager, which we can offer, for a fixed price, to help you navigate the redundancy process. It’s tried and tested, to find out more, please contact us.
The Firm also have the Tollers HR product, which in this current climate, we are pleased can give peace of mind, for 12 months, in dealing with staff at a fixed cost, which can be budgeted for.
For more information regarding the Flexi Furlough scheme and for all your employment and legal HR requirements…talk to Tollers on 01604 258558 and Rebecca and the Employment team will be happy to assist and guide you through.