New Furlough Rules - July 2020

We set out below the updated guidance on Furlough and the new rules applying for the varying dates:

From 1 July 2020:

1. You will only be able to claim for employees who have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June

2. You can flexibly furlough employees – this means you can bring your employees back to work for any amount of time, and any work pattern

3. You will still be able to claim the furlough grant for the hours your flexibly furloughed employees do not work, compared to the hours they would normally have worked in that period

From 1 August 2020:

The level of the Coronavirus Job Retention Scheme grant will be reduced each month. To be eligible for the grant employers must continue to pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

From 1 August, no grant will be available for Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer.

From 1 September 2020:

The government grant towards the employee wages will be reduced to 70%. During this month you will be asked to contribute towards the cost of your furloughed employees’ wages to ensure they continue to receive at least 80% of their wages for the time they’re on furlough

From 1 October 2020:

The government grant will be reduced to 60%. During this month you will be asked to contribute towards the cost of your furloughed employees’ wages to ensure they continue to receive at least 80% of their wages for the time they’re on furlough

The furlough scheme ends on 31 October.

You’ll still need to pay the employer National Insurance and pension contributions on your furloughed employees’ pay.