Associate Travlaw explains about Flexi Furlough

Whilst we await guidance on the changes to the furlough scheme to be published on 12 June, we recap below the changes to the furlough scheme announced by the Chancellor on 1 June 2020 and when they will come into play.

  • 10 June 2020 The last date upon which employers can place employees on furlough for the first time.
  • 30 June 2020The furlough scheme will close to all new entrants. Thereafter, furlough will only be available to those employees that have been on furlough for a full 3-week period prior to 30 June.
  • 1 July 2020Flexible furlough introduced. Employees are able to return to work part time and be paid for those hours by the employer, but also remain on furlough and receive furlough pay for the contracted hours they remain at home on furlough.
  • 1 August 2020 – Employers will pay the cost of employers NI and auto enrolment pension contributions. The government will continue to pay 80% of wages, capped at £2,500 for furloughed staff.
  • 1 September 2020 – Employers will have to contribute 10% of furloughed wages for staff, plus NI and pension contributions. The government will pick up 70% of a furloughed employees wages.
  • 1 October 2020 – Employers will have to contribute 20% of furloughed wages for staff, plus NI and pension contributions. The government will pick up 60% of a furloughed employees wages.

Self-employed Income Support Scheme – extended!

Applications will be open for a second and final grant in August 2020. There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to £6,750.

For further details please contact ami@travlaw.co.uk
or call 0113 258 0033

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