Partner Sue Dowling, head of our Employment Law team, explains the levels of support that employers and employees will receive between June 2020 and the end of the Government's Flexible Furlough Scheme in October 2020.
Winding Down of the Furlough Scheme
In a briefing on 29 May 2020, Chancellor Rishi Sunak set out the Government’s plan for a phased winding down of the Furlough Scheme (also known as the Coronavirus Job Retention Scheme and the Flexible Furlough Scheme).
Between now and the end of the Scheme on 31 October 2020, the level of support provided by the Government will be gradually reduced, with employers expected to contribute an increasing proportion of employee’s wages in September and October, whilst also meeting National Insurance and minimum pension contribution costs as of 1 August.
What is Flexible Furlough?
From July, a month earlier than previously suggested, employers will be able to bring employees back from furlough on a part-time basis although the detail of the part-time furlough arrangements (in terms of impact on the % amount recoverable under the Scheme*) is not as yet known.
Below, we have outlined the varying levels and options that will apply on the information currently available although as more detail is expected (relating to the part-time flexible furlough arrangements), the up to date position should be checked regularly.
The Levels of Government Support
|
Month |
Government’s contribution to wages |
Employer’s contribution to wages (but note * above) |
Employer can claim a grant to cover NI and pension contributions |
Part-time return to work an option under the Scheme |
|
June |
80% |
0% with the option to top up to 100% |
Yes |
No |
|
July |
80% |
0% with the option to top up to 100% |
Yes |
Yes |
|
August |
80% |
0% with the option to top up to 100% |
No |
Yes |
|
September |
70% |
10% with the option to top up to 100% |
No |
Yes |
|
October |
60% |
20% with the option to top up to 100% |
No |
Yes |
Legal Advice on the Flexible Furlough Scheme
Advice on this area of law, and on restructuring and redundancy situations, can be obtained from partners Sue Dowling or Tim Clark, in our specialist Employment law team.
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.
