Latest Coronavirus Job Retention Scheme Rules To Be Available On Friday
UK companies that want to use of the government’s Coronavirus Job Retention Scheme have until tomorrow (10 June) to furlough any employees that haven’t already been registered, say employment lawyers at Irwin Mitchell.
Lawyers at the national firm have also confirmed that organisations which miss the deadline will be unable to furlough them under the new flexible scheme which starts in July.
The government guidance states:
The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
Expert Opinion“This 10 June deadline only appears to apply to employees who have not been furloughed at all during the period 1 March to 30 June. This suggests that employers will be able to re-furlough staff even if they have returned to work and are not furloughed as at 30 June.” Sybille Steiner - Partner
Employers will have until Friday 31 July to make any claims in respect of the period to 30 June.
The Chancellor, Rishi Sunak recently announced that the furlough scheme will change from Wednesday 1 July and will end after eight months on 31 October 2020.
Employers will be asked to make, what the government describes as a "modest contribution" to furlough costs:
• From 1 August 2020, the government will continue to pay 80% of the furloughed employee's salary (subject to the £2,500 cap), but employers will have to meet the cost of employers NI and pension contributions.
• From 1 September 2020, the government will pay 70% of the furloughed employee's salary (subject to a cap of £2,187.50) and employers will have to contribute 10%.
• From 1 October, the government will pay 60% of the furloughed employee's salary (subject to a cap of £1,875) and employers will have to contribute 20%.
From 1 July employees will be able to return to work for part of their contracted hours and remain furloughed and receive furlough pay for the hours they remain at home.
Further details of the new scheme will be published on Friday 12 June.