The furlough scheme, which was introduced last March, has so far helped to support around 11 million jobs in the UK throughout COVID-19. It was due to come to an end in April 2021, but in the Chancellors latest budget he announced the scheme will now be extended until the end of September 2021.
|Month(s)||Government Cont.||Employer Cont.|
|August & September||60%||20%|
The furlough scheme will continue to cover 80% of an employee’s pay, up to £2,500 a month. In line with last year, employers will be asked to make a percentage of contributions to furlough pay in the final months of the scheme, as the economy begins to reopen. Employers will continue to cover employees National Insurance and pension contributions.
The ‘flexible furloughing’ scheme will also remain in place, giving employers maximum possible flexibility in bringing workers back gradually. Employers will continue to pay for any days worked, whilst the government pay the remainder.
The government has told employers that if they wish to flexibly furlough an employee, they must make a new formal agreement with the employee, and importantly – a written record must be kept of this.
You can download a furlough variation of contract letter template for your employees here
CJRS – FAQ’s
- Can an employee who has been previously dismissed be re-instated on the CJRS?
Employees whose RTI (Real Time Information) payment submission was made to HMRC on or before the extension was announced, will be eligible for grants under the CJRS. This is split into two eligibility category’s:
|Periods on or before 30th April 2021||Periods on or after 1 May 2021|
|The employee was employed on 30th October 2020 |
A PAYE RTI submission was made to HMRC for the employee between 20th March and 30th October 2020
|The employee was employed on 2nd March 2021 |
A PAYE RTI submission was made to HMRC for that employee between 20th March 2020 and 2nd March 2021.
- Can you make an employee redundant whilst on furlough?
Yes. All employment law rights remain the same for both employee and employer whilst an employee is on furlough.
- Can I claim furlough pay during an employees notice period?
From 1st December 2020, the furlough scheme can no longer be used to cover the cost of an employee serving a contractual or statutory notice period. The employer must cover the full cost of the notice period. Further details of this can be found in our previous blog post – click here.
- How does flexible furlough work for those with no set hours/flexible hours contracts?
The amount of grant able to be claimed by employers for employees with no set working hours who wish to be placed on ‘flexi-furlough’ is complicated. Firstly, it is important employers and employees agree in a written contract the working pattern chosen during the employee’s time on ‘flexi-furlough’.
For the employer, when submitting claims for an employee with no set hours, they will need to provide information on actual hours worked, along with hours the employee would have been expected to work in the relevant claim period. The information about ‘usual hours worked’ is based on previous averages and is the same as under the first phase of the furlough scheme. Click here for access to our Contract Variation Letter template.