JOB RETENTION SCHEME - FLEXIBLE FURLOUGHING AND IMPORTANT DATES

From 1 July 2020, Businesses will have the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August.
 
Businesses can decide the hours and shift patterns that their employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
 
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing.
 
When claiming the CJRS grant for furloughed hours, you will report and claim for a minimum period of a week. Businesses can choose to make claims for longer periods such as on monthly or two weekly cycles if this is more appropriate.
 

• You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked. We can assist and make the claims for you.

• If you have received a letter from HMRC stating whether you are eligible and the amount you are eligible for, please forward copies to our payroll team. payroll@rawcliffe.co.uk

 
If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
 
Employer contributions
 
From August, the government grant will be tapered as follows:

• For June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER’s NICs) and pension contributions for the hours the employee does not work – from the 1st of July employers will have to pay employees for the hours they work.

• In August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER’s NIC’s and pension contributions.

• From 1 September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500

• For the final month of the scheme in October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500

• the cap on the furlough grant will be proportional to the hours not worked.

 
Important dates
It is important to note that the scheme will close to new entrants from 30 June. From this point onward, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30 June.
 
This means that the final date that you can furlough an employee for the first time will be 10 June for the current three-week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
 
Guidance and support
Further support on how to calculate claims with the extra flexibility will be available by 12 June and we will keep you informed about the detail and your written requirements in due course. If you have any questions please contact us.
 
See Government Guidance

The Rawcliffe & Co team is available via phone or email Monday to Thursday 9-5pm and 9 – 4:30pm on Fridays.

Tel: 01253 798812
Email: info@rawcliffeco.com