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As the Government seeks to reignite the economy, and with the CJRS cut off looming, employers can now take a more flexible approach.
Information as of Monday 8 June 2020 at 9am UK
The CJRS was originally open for three months and backdated from the 1 March to the end of June 2020 but has now been extended to the end of October 2020. Under the current rules, there is a three week minimum furlough requirement. If you are considering furloughing an employee for the first time, you must do so by 10 June, to ensure they have completed a three week qualifying furlough period by 1 July.
Employers need to make a claim and submit information about the relevant employees to HMRC through this new portal. More information can be found on the UK Government's dedicated webpage.
Employers will have until 31 July to make any claims in respect of the period prior to 30 June.
From 1 July, employers will be able to bring employees back to work on a part-time, flexible basis, while still receiving furlough pay from the government for the hours which the furloughed employees would have usually worked.
Importantly, employers must note that only hours not worked (that would have usually been worked) can be claimed for under the scheme.
Employers can decide the hours and shift patterns their employees will work and will be responsible for paying their wages in full whilst working. This means that employees can work as much or as little as the business needs, with no minimum time.
Any working hours arrangement agreed between an employer and their employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, the employer will also need to report and claim for a minimum period of a week.
From August, employers will need to share the cost of paying salaries with the Government. The following was announced on 29 May:
Employees who are unable to return to work or where their employer does not have work for them to do can remain on furlough and the employer can continue to claim the grant for their full hours under the existing rules.
If you haven't yet registered a claim or would like to know how the introduction of a more flexible furlough may benefit your business, please contact Kiki Stannard or Tim Baker.