Changes to the furlough scheme have been shared by the Government and these will take place from the 1 July 2020.
Scheme closed to new entrant employers
The furlough scheme will be closed to new employers who have not applied for the furlough scheme by the 30 June 2020 and have already furloughed employees 3 weeks before this dates (10 June 2020).
Maternity/paternity leave
Employees who are returning from statutory maternity or paternity leave will still be eligible for the furlough scheme, after the official cut-off date of 10 June 2020. Employers must already be registered for the furlough scheme and previously furloughed employees.
Time limit abolished
When the furlough scheme was announced employers had to furlough staff for a minimum of 3 weeks, with effect from the 1 July this is no longer be the case. There will be no minimum time period for employers to adhere to.
Flexibly furlough employees
Employers will have the opportunity to bring employees back for any amount of time and shift whilst also claiming for hours the employee is furloughed. This means that if employers require staff to work part of their hours/shifts but not their full contracted hours/shifts they can bring employees back for a set amount of time (and the employer would pay for this at the employee’s full contractual pay including NIC & tax). The employee can still be furloughed for the remaining contracted hours/shift they are not required to work. It is important to note that the furloughed employees must not complete any work or provide services for an employer whilst they furloughed.
It is acknowledged that circumstances can change throughout the furlough period, employers can flexibly furlough their staff on more than one occasion and this agreement can last for any amount of time during the furlough scheme.
Making a Claim
When employers submit their furlough claims they must submit flexibly furloughed and furloughed employees at the same time and as one claim.
Claims can be made before or after employers payroll has run. They must be mindful that if their payroll has already run and the claim made, if employers have flexibly furloughed employees and the employee works more hours than originally planned, then the employer will need to re-pay the grant of any additional hours worked.
Claim periods starting on or after 1 July must start and end within the same calendar month and must last at least 7 days unless you’re claiming for the first few days or the last few days in a month. You can only claim for a period of fewer than 7 days if the period you are claiming for includes either the first or last day of the calendar month, and you have already claimed for the period ending immediately before it*.
Employers wishing to claim under the Furlough scheme before 30 June 2020 must have completed their claims with HMRC by the 31 July 2020.
GDPR
If employers are furloughing staff they should have a written agreement in place. This extends to any employer opting to flexibly furlough staff, employers will need a new written furlough agreement in place. This agreement should be retained for 5 years. Employers must document the hours an employee actually worked during their flexible furlough and their normal contracted hours, any claim(s) made under the furlough scheme must be retained for 6 years.
You can also read our previous blog which details the different furlough scheme cost implications for businesses following the Chancellors announcement on the 29 May 2020.
For further advice on the furlough scheme, please don’t hesitate to contact your HR Consultant on 01924 827869. If you are not a client but would like to discuss options for support and advice please call one of the team on 01924 827869 and we will do our best to help you.
We are trying to keep information up-to-date but as guidance is constantly changing, please check our latest blogs and also refer to our COVID FAQ questions which you can access here.
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