|
Re: Flexible furlough
MILS members will have noted Friday evening’s announcement by the Chancellor confirming changes to the CJRS scheme over the next few months. As ever we await the detailed guidance (expected around the 12th June). In the meantime, the headlines were as follows:
- 1st July: Flexible furlough will be available, meaning employers will be able to agree part-time working arrangements with previously furloughed employees, so employees can be furloughed part-time and work part-time. Note also that the scheme will be closed to new entrants on 30th June which means that the last 3 week furlough period (existing rules) is effectively from 10th June.
- 1st August: Employers will be asked to pay pension and national insurance contributions. The press release suggests for the average claim this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- 1st September: The Government will pay 70% of salary (up to a cap of £2,187.50). Employers are required to top up to the 80% level (or more if agreed).
- 1st October: The Government will pay 60% of salary (up to a cap of £1,875). Employers are required to top up to the 80% level (or more if agreed).
The scheme will end, fittingly, on Halloween (31st October 2020).
As above, we will know more detail when the guidance is published. It would seem to us that the flexible furlough idea is entirely sensible and will assist with the changes to working arrangements that are going to be required over the coming weeks and months as (hopefully) businesses start to return to (something like) normal.
Finally in other Covid employment news: The Government has confirmed it is extending entitlement to SSP to those who will be told to isolate (but are not ill) under the Test and Trace scheme.
MILS Legal Ltd.
T/A Motor Industry Legal Services
27b The Mansions
252 Old Brompton Road
London SW5 9HW
Tel: 020 7244 6790
Fax: 020 7244 6791
Email: legaldept@mils.co.uk
|
|
