Flexible furlough
Thursday 2nd July 2020
The revised Coronavirus Job Retention Scheme (CJRS) is now in force. Since the cut-off date of 10 June 2020, it has not been possible for employers to use CJRS for new furloughs, save where an exemption applies in respect of an employee returning from statutory family related leave.
However, those employees who had completed a block of 21 calendar days of furlough leave by 30 June 2020 can now return to work on a flexible basis, once they have completed their most recent 3 week furlough. The employer then pays normal salary for working time, but can claim proportionately under the CJRS for the usual hours which are not worked.
An employer cannot, however, flexibly furlough more employees than were previously furloughed at the same time in any period before 30 June 2020.
Flexible furlough arrangements must be agreed in writing and a record maintained until at least 30 June 2025.
Regardless of whether flexible furlough is being used, from 1 August 2020, employers start contributing to CJRS payments, initially by paying the employer national insurance and pension contributions due. Added to this is a 10% contribution to CJRS salary payments for September, increasing to 20% for October, with the CJRS due to end on 31 October 2020.
CJRS claims for the period ending on or before 30 June must be submitted by 31 July 2020 and there are specific rules regarding CJRS claims from 1 July.
The various online guides have been updated to include a calculator and worked examples. The collection of guidance can be viewed from this link:
https://www.gov.uk/government/collections/coronavirus-job-retention-scheme
All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.