Furlough Flexibility, What Do Employers Need To Know?
15 June 2020 by Bushra Elzubeir
Many employers will be turning their minds to redundancies, now that the rules in relation to the furlough scheme are becoming less generous and are becoming more complex.
On Friday, HMRC released details of a new revamped furlough scheme, which will start on 1st July 2020.
What is flexible furlough?
Under the new flexible arrangements, employees will be permitted to work for some of the week and be furloughed for the rest, in proportions to be decided between employer and employee.
In broad terms, from 1st July, employers will be able to claim a pro rata’d amount of employees’ 80% of salary, based on the proportion of hours that are not worked out of “normal working hours”. Normal working hours are calculated by reference to the number of hours worked in the paid period before 19th March 2020, for those with fixed pay.
For others who have variable pay, calculations are done taking into account the higher of:
- (a) the average number of hours worked in the tax year 2019 to 2020, or
- (b) the corresponding calendar period in the tax year 2019 to 2020.
A worked example of how to work out 80% of your employee wages is available to see on the government website.
Any significant changes that a minimum 3 week period for furlough has been removed (as of 1st July 2020). Any claim though made through the CJRS portal must be in respect of a minimum 1 week period; which means employers cannot put in more than 4 claims in a month.
A useful summary of the changes can be found on the government website.
If you have any employment matters and would like further advice in relation to the same, please contact Fisher Jones Greenwood LLP for expert legal advice, call 01206 700113 or email [email protected].
For more information on furlough leave, read our informative blog on the Coronavirus Job Retention Scheme.
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