The Coronavirus Job Retention Scheme was extended to 31 October 2020 earlier in May and on 29 May 2020, the Chancellor announced more details about this extension to the scheme. The new guidance is aimed at allowing employers to bring back staff on a part time basis, and involves employers contributing towards the cost of the scheme on an increasing basis.
The scheme will close to new entrants from 30 June 2020. From this point onwards, employers will only be able to furlough employees that you have furloughed for a full three-week period prior to 30 June 2020. This means that the final date that you can furlough an employee for the first time will be 10 June 2020 for the current three-week furlough period to be completed by 30 June 2020.
Employers will have until 31 July 2020 to make any claims in respect of the period to 30 June 2020.
A condition of the original scheme was that furloughed employees could not do any work whilst on furlough. With effect from 1 July 2020, in order to assist employers in bringing employees back into work, employers will have the flexibility to bring previously furloughed employees back to work on a part time basis. The Government will continue to contribute to wages for any of their normal hours they do not work at 80% up to a cap of £2,500 per month although this contribution reduces over coming months as explained below.
The employer can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full for the hours they are working. This means that employees can work as much or as little as your business needs, with no minimum time that employers can furlough staff for.
There are some key points to record and retain for the furloughed employees:
From 1 March 2020 the Government have funded 80% of wages for furlough staff up to a cap of £2,500 per month as well as the employers’ national insurance and pension contributions. Employers are now being asked to share the cost of the furlough wages as follows: