Partner Sue Dowling, head of our Employment Law team, highlights the imminent 9 June deadline for employers wanting to place employees who have worked throughout the COVID-19 pandemic on Furlough Leave, with the Scheme set to close to new furloughers at the end of June.
The background
There has been considerable coverage in the press of the support available to employers during the COVID-19 pandemic, particularly regarding the Coronavirus Job Retention Scheme. Since March, the Scheme has enabled employers (subject to certain criteria being fulfilled and to certain limits) to place employees on furlough leave and to claim a grant via HMRC to assist them in meeting their commitments to pay staff salaries (plus National Insurance and limited pension payments).
Changes from 1 July 2020
The Scheme will change in two respects from 1 July 2020:
- Employees, who were previously prohibited from undertaking any work for their employer whilst furloughed, will be able to return to work on a part-time basis whilst remaining on partial Furlough Leave.
- The level of grant that will be payable by HMRC will be tapered between July and October 2020, as the Scheme is wound down. See our blog article for more information.
Next steps
Further details about the varied Scheme are unlikely to be available until 12 June 2020. However, as an employer, you may need take action this week to protect your business. This is because there is a deadline of 9 June 2020 which must be met in the following circumstances:
- If you wish to place staff who have worked throughout the pandemic on Furlough Leave for the first time, you must reach an appropriate agreement (in writing) with them by 9 June 2020, to the effect that they will commence their Furlough Leave on 10 June 2020.
A member of staff must be on Furlough Leave for three weeks before the grant will be payable and the Scheme will close to new furloughers at the end of June. Until 1 July 2020, anyone on Furlough Leave cannot work for their existing employer.
- For the same reasons explained above, you should consider conducting an urgent review before 9 June 2020 of any existing furlough agreements in place to ensure that they are fit for purpose for the varied Scheme terms.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
