From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and on any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. This is one month earlier than was originally announced.
When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of 7 calendar days, although the flexible furlough can last for any period of time.
To be eligible for the grant, employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing.
Please see our template letter for arranging flexible furlough here.
Employers can claim the grant for the hours their employees are not working calculated by reference to their usual hours worked in a claim period. See ‘How do I calculate what are the usual hours for flexibly furloughed employees?’ for more detail on how to establish what an employee’s usual hours are.
Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period. For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.
The cap on the furlough grant will be proportional to the hours not worked.
Closed to new entrants from 30 June:
The scheme closed to new entrants from 30 June, unless they are returning from statutory parental leave or they are a returning military reservist. For more information on this, please see ‘Can I still furlough an employee who has returned from maternity, shared parental, adoption, paternity or parental bereavement leave (statutory parental leave) after 10 June?’ or ‘Can I still furlough an employee who is a returning military reservist?’. Employers will now only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June. This means that the final date by which an employer can furlough an employee for the first time was 10 June, in order for the current three-week furlough period to be completed by 30 June. Employers had until 31st July to make any claims in respect of the period to 30 June.
From 1 July, the scheme is only available to employers that have previously used the scheme in respect of employees they have previously furloughed and the maximum number of employees that employers will be able to claim for is limited to the number of employees claimed for in any claim period up until 30 June 2020.
From 1 July, claim periods can no longer overlap months. Employers who previously submitted claims with periods that overlapped calendar months will not be able to do this going forward. This is necessary to reflect the changes to the scheme.
Employers can continue to make claims in anticipation of an imminent payroll run, at the point payroll is run or after payroll has been run.
Employers can make their first claim under the new scheme from 1 July.
From August 2020, the level of the grant will be slowly tapered to reflect that people will be returning to work.
In June and July, employers will be able to continue to claim 80% of wages, including employer NICs and pension contributions, for any time the employee is furloughed but if the employee undertakes any work, employers will have to pay them for the hours worked.
In August, the government will continue to pay 80% of wages up to a cap of £2,500, but employers will have to pay employer NICs and pension contributions for the hours the employee does not work, plus the wages and costs for any hours the employee has worked.
In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay employer NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500, plus the wages and costs for any hours the employee has worked.
In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500, plus the wages and costs for any hours the employee has worked.
The cap will be proportional to the hours not worked.