Latest Furlough Leave Update
No doubt you’ll have seen the Chancellor’s latest furlough briefing on 29th May 2020. We’re still waiting for the full details, but we thought it would be useful to highlight the main points. By way of a timeline, the takeaway aspects are:
- After 10th June 2020 employers can’t place staff on furlough leave. This means that 10th June is the last day an employee can be furloughed;
- From 1st July 2020 employees can work part time and be furloughed part time. Employers will have to pay full pay to staff whilst they’re working, but can claim through the Coronavirus Job Retention Scheme (CJRS) for the time they’re furloughed. Employers will therefore need to plan staff rotas accordingly if they want to take advantage of this;
- From 1st August 2020, employers won’t be able to claim employer National Insurance contributions back under the CJRS and will instead need to pay those themselves;
- From 1st September 2020, the Government will reduce their contribution and will pay 70%, rather than 80% of salary, up to maximum cap of £2,190. Employers will therefore need to pay the extra 10% to make it up to 80%, or the £2,500 cap;
- From 1st October 2020, the Government will then reduce their contribution further and will pay 60% of salary, up to a maximum of £1,875, and as above, employers will need to make the salary payments up to 80%, or the £2,500 cap; and
- On 31st October 2020, the CJRS will close.
What does this meant to me?
This is more of a staggered approach than was first expected to be announced and it introduces flexibility in the way that staff are placed on Furlough. It also means that Companies will have to start contributing to the cost of their staff who are on Furlough.
No doubt these changes will leave companies considering their options. Tollers is here for you and can offer insurance backed employment law advice for 12 months for a fixed cost under Tollers HR. We also offer fixed cost redundancy management products as well as tailored bespoke advice to help you through this challenging time. To find out more then talk to Tollers on 01604 258 558 and a member of the Employment Team will be happy to talk to you further about this.