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Flexible furlough scheme: what employers need to know
Özlem Mehmet
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.
The Coronavirus Job retention Scheme (CJRS) has gone through many alterations since its introduction. Above we list the key dates/events leading to the closure of the scheme.
Further information
Further details and answers to specific practical questions can be found in our updated FAQs for UK Employers.
For specific enquiries regarding furlough, please contact a member of our employment law team.
Employment Law Team
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