Flexibility and timeline for Furlough Scheme
Starting from 1 July 2020, some flexibility has been incorporated in the Furlough Scheme. This will apply to employers who currently have furlough employee arrangements in place.
So, what is the flexibility from 1 July 2020 onwards till the end of Scheme?
I set out below the changes in the scheme from 1 July 2020. Please note cap on the maximum amount of furlough pay claim and other things remain the same if not specifically mentioned:
- Previously furloughed employees can can return to work on part time basis and the remaining non working time can be claimed. Others things remain the same until 31 July 2020. So only change from 1 July to 31 July 2020 is the flexibility in working part times & still be able to claim furloughed payment for hours not worked.
- From 1 August 2020, employers will have to bear the costs of Employee’s National Insurance Contributions as well as the pension contributions.
- Starting from 1 September 2020, only 70% of furloughed employees wages will be funded by the Government. Therefore, the employers have to bear the remaining 10% of the wages + all NICs + pension contributions.
- Lastly, from 1 October 2020, only 60% of furloughed employees wages will be funded by the Government. Therefore, the employers have to bear the remaining 20% of the wages + all NICs + pension contributions.
The scheme will then completely close on 31 October 2020