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Flexible Furlough Scheme – Guidance for Employers July to October

From 1st July 2020, employers will have the flexibility to bring back furloughed employees for part-time work, for any amount of time and on any shift pattern, and still claim furlough grants for any of the employee’s normal hours which are not worked.

Furlough pay will be calculated according to an employee’s usual working hours in a claim period minus the hours actually worked.

The final date by which an employer can furlough an employee to benefit from the CJRS was 10th June 2020, as the scheme closes to new entrants from 30th June 2020 and an employee must have had a minimum  3-week furlough period before that date if they wish to avail themselves of the Flexible Furlough Scheme.

The only exception to this is for employees on statutory parental leave (such as maternity and paternity leave) before 10th June 2020 or military reservists returning after this date. These employees will still be eligible for furlough leave even though they won’t have met the 10th June 2020 ‘cut off’ date, provided that (a) the employee was on the payroll at 19th March 2020, and (b) the employer has submitted a claim for at least one other employee who did meet the 10th June 2020 deadline.

How much will it cost me as an Employer?

July 2020

From 1st July 2020, employees will be able to work as much or as little as the employer requires. However, claims under the CJRS will be restricted to those businesses using the scheme prior to 30th June 2020.

Government contribution: 80% wages (£2,500 cap) for hours not worked
Employer cost: pay employees for the hours worked, and pay employer NICs and pension contributions for hours not worked.

August 2020

Government contribution: 80% wages (£2,500 cap) for hours not worked
Employer cost: pay employees for the hours worked, and pay employer NICs and pension contributions for hours not worked.

September 2020

Government contribution: 70% wages (£2,187.50 cap) for hours not worked
Employer cost: pay employees for hours worked, pay employer NICs and pension contributions for hours not worked, and pay 10% top-up for hours not worked (£2,500 cap).

October 2020

Government contribution: 60% wages (£1,875 cap) for hours not worked
Employer cost: pay employees for hours worked, pay employer NICs and pension contributions for hours not worked, and pay 20% top-up for hours not worked (£2,500 cap).

Summary provided by Kane HR.

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