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Job Retention Scheme: Flexible Furlough

Adam Pritchard

By Adam Pritchard
22 July 2020

The COVID-19 Job Retention Scheme is now being updated at the start of every month and we have put together a guide explaining Flexible Furlough and a brief timeline of the changes that are being phased in.

Job Retention Scheme: Updates

Timeline

 

Month Change
July Flexible furlough commences
August In August employers will be asked to contribute to furloughed employees’ pensions and employers’ NIC
September In September the grant available will be reduced to 60%
October In October the scheme is scheduled to end

 

Flexible Furlough: Explained

 

1. Who is eligible to be furloughed under the scheme?

  • Anyone is eligible to be furloughed under the new flexible furlough scheme as long as they meet the following criteria:
    • They were furloughed for a minimum period of three weeks between 1st March and 30th June.
    • The only exceptions to this are parents returning to work from parental leave

 

2. What is the duration of furlough?

  • From the 1st of July, you’ll be able to bring back employees part-time for any number of hours on any shift pattern and still claim a grant for the number of usual hours they are furloughed.

 

3. How long are the claim periods?

  • From the 1st of July and the beginning of every month thereafter, furlough claims must begin and end in line with the calendar month.
  • Claims must be for a minimum period of 7 days
  • Although you can claim up to two weeks in advance if you do and the worker ends up working more than the estimated hours you will be liable to repay the balance of the grant to HMRC
  • You must include all furloughed staff on one claim

 

4. Calculating the grant

This bit gets tricky and we have resources you can access to help you get to grips with the calculations or alternatively, you can speak to us directly.

You will begin by taking the usual hours worked and subtracting from them the number of hours actually worked to arrive at the number of furloughed hours.

However, calculating the “usual hours” isn’t just as simple as multiplying 40 hours by 4 weeks so be sure to seek the advice of a professional if you’re unsure.

 

In Summary

Linford Grey is keeping regularly updated on the changing legislation and how to precisely execute the changes being introduced.

If you have any questions or queries please feel free to get in touch.