Furlough Leave Updates & Key Dates

On 29th May 2020 the Chancellor, Rishi Sunak, announced changes to the furlough scheme. These include some key dates employers should be aware of:

• 10th June 2020 will be the last day that employers can place employees on furlough leave

• From 1st July there will be ‘flexible furlough’ which will allow employees to work part-time and be on furlough part-time. The employer will be responsible for paying the employees their full wages for the hours they work, but can claim for the normal hours that they do not work (i.e. hours they remain on furlough)

• From 1st August employers will have to pay employees’ national insurance contributions and pension contributions

• From 1st September the government will only reimburse 70% of salary for the hours they do not work (up to a maximum of £2,190) with employers required to top-up to 80%

• From 1st October, the government will only reimburse 60% of salary for the hours employees do not work (up to a maximum of £1,875) with employers required to pay up to 80%

• The furlough scheme will close on 31st October 2020

Further details of the changes to the furlough scheme are due to be published on 12th June 2020.

Businesses should be aware of the changes and the options that are available to them. We can offer advice and guidance on next steps and how this will affect your business during this difficult time. No matter is too big or small.

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Furlough Leave Updates & Job Retention Scheme Directive