COVID-19 EXPERT LEGAL INSIGHTS

The Furlough Countdown

Last updated: 8 July 2020

8 July 2020

10 June 2020

Last chance to furlough employees for the first time

Last date on which employees could have been furloughed for the first time.

1 July 2020

Flexible furlough scheme starts

Flexible furlough scheme rules take effect. Employees eligible to be furloughed under the scheme (i.e. those who have already been furloughed at some point between 1 March 2020 and 30 June 2020) may be put on part furlough/part work arrangements, or furloughed on rotation.

Read more about the flexible furlough scheme

31 July 2020

Deadline to claim under old rules

Final date on which employers can submit furlough grant claims for the period up to 30 June 2020.

1 August 2020

First scaling back of the furlough grant

From today, employers can continue to claim back 80% of wages in respect of furloughed employees (subject to the £2,500 per month per person cap). However, they will now have to pay the employer NICs and pension contributions in respect of those individuals.

1 September 2020

Second scaling back of the furlough grant (to 70%)

From today, employers will only be able to claim back 70% of wages in respect of furloughed employees (subject to the cap). Employers will have to “top up” wages to 80% (subject to the cap, so 10% of wages subject to £312.50 per month per person) and pay all employer NICs and pension contributions in respect of those individuals.

1 October 2020

Third scaling back of the furlough grant (to 60%)

From today, employers will only be able to claim back 60% of wages in respect of furloughed employees (subject to the cap). Employers will have to “top up” wages to 80% (subject to the cap, so 20% of wages subject to £625 per month per person) and pay all employer NICs and pension contributions in respect of those individuals.

31 October 2020

Furlough scheme ends

No further claims can be made under the scheme. Possible actions employers may consider (with careful planning and advice in advance as to implementation in order to avoid exposure to claims): (1) return to work with/without reduction in pay or hours; (2) continued furlough without Government grant (i.e. pay furloughed employees what they would have received under the furlough scheme); (3) unpaid leave; or (4) redundancies.

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