On 12 June 2020 the Government released further guidance on how the flexible furlough scheme will operate from 1 July 2020. This scheme is an adaptation to the original Job Retention Scheme and has been designed as a way to assist employers bring furloughed employees back into work on a part time basis while still being able to claim financial assistance from the Job Retention Scheme.We have set out below some Q&A on the flexible furlough scheme.
What is a flexible furlough?
From 1 July 2020, employers can bring furloughed employees back to work for any amount of time and any work pattern.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.
How do I put employees on flexible furlough?
From 1 July 2020, only employees that you have successfully claimed a previous grant for will be eligible for more grants under the scheme.This means they must have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March and 30 June 2020. For the minimum 3 consecutive week period to be completed by 30 June, the last day an employee could have started furlough for the first time was 10 June.You should have a discussion with employees who you wish to place on the flexible furlough scheme because you will need to agree the arrangements of their part time work. The agreement should be confirmed in writing and you must keep a written record of the agreement for five years.You do not need to place all your employees on furlough. In addition, you can continue to fully furlough employees if you wish.
How long can flexible furlough last?
Flexible furlough agreements can last any amount of time. This means that they do not need to last for a minimum of 3 weeks. However, the period that you claim for must be for a minimum period of 7 calendar days. Any flexible furlough period of less than this cannot be claimed for via the scheme.Employees can enter into a flexible furlough agreement more than once.
What do I pay an employee on flexible furlough?
You will pay the employee for the hours they work, along with national insurance contributions and pension contributions for those hours.The scheme will allow you to recover the remainder of wages to a maximum cap. Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours.The amount that the scheme will cover will begin to decrease from September 2020, and you will be responsible for all of the national insurance and pension contributions from August 2020, regardless of the employee being on flexible furlough. Claims under the new scheme will be open from 1 July 2020.When claiming for employees who are flexibly furloughed you should not claim until you are sure of the exact number of hours, they will have worked during the claim period. This means that you should claim when you have certainty about the number of hours your employees are working during the claim period. If you claim in advance and your employee works for more hours than you have told HMRC about, then you will have to pay some of the grant back to HMRC.
A lay-off is where employees are not provided with work by their employer and the situation is expected to be temporary. Short-time working occurs when employees are laid off for a number of contractual days each week, or for a number of hours during a working day.
The Job Retention Scheme will reduce the number of companies making redundancies. However, many firms are facing reduced demand once the crisis is over and will be have to reduce headcount. Managing staff redundancies is a sensitive complex process. Click this link which provides a guide to the process.
We can help you to; design a process that's fair and selects people for redundancy & models cost impact; run the consultation meetings; run the outcome of consultation meetings; and handle any appeals.
Employees are being encouraged to work from home but there are issues relating to lone working and feelings of isolation. Our partners at Engagement Multiplier have a free survey tool for employers, enabling you to take the pulse of those working from home. Click this link to get started: https://signup.engagementmulti...
We can help in providing: Recruitment & Selection,Training & Development Plans & On-Placement Support. Check out our Pod-Cast for more: https://anchor.fm/phil-hutchinson-may/episodes/KickStart-Scheme---a-plan-for-jobs-2020-ehg443
Please contact us if you have any questions about people management & development and see how we can help you.