Updates to the furlough CJRS scheme were announced on Friday evening. We set out the key points here.
Funding Levels
There are no changes funding levels until the end of July and then a sliding scale of employer funding as follows:
- August – the employer covers Employers National Insurance and Pension contributions
- September – HMRC cover 70% and the employer covers 10% of the total 80% furlough wage
- October – HMRC cover 60% and the employer covers 20% of the total 80% furlough wage
New Flexible Scheme
Employers can bring employees back from furlough on a part time basis from 1st July.
Employees would be paid as usual on their working days and the furlough rate for non-working days. The example given was a two day working week, paid 2 days at their full rate and the three remaining furlough days at the scheme rate.
Closure to New Entrants
The furlough scheme will close to new entrants on 30th June. If you have someone you have not already claimed for, the last date that they can start furlough is therefore 10th June to ensure the minimum three full weeks furlough.
Final Closure
The furlough scheme closes at the end of October 2020
Next steps
Many employers are taking this opportunity to review their staffing levels and plan changes. We talk more about how to do this in our recent article on people planning.
If you need support with furloughing or with bringing people back in to work you can download template letters from our free member area, or please do get in touch today.