Motor Industry Legal Services

legaldept@mils.co.uk | www.mils.co.uk | 020 7244 6790

Dear %%First Name%%,

Late on Friday the Government published its further guidance on the flexible furlough arrangements that will apply from 1st July onwards. They look, well, a little complicated...

The updated guidance, including changes to the old scheme that apply from 1st July 2020 onwards, can be seen at the following link.

The headlines can be summarised as follows:

  1. From 1st July onwards there will be no minimum furlough period and the present 3 week minimum will no longer apply. There will be a minimum claim period (i.e. when employers put through a claim to HMRC) of one week.

  2. Any employee previously furloughed for at least 3 consecutive weeks by 30 June 2020 will be eligible for flexible furlough after 1st July.

  3. Employers and employees will need to keep a “new written agreement” when implementing flexible furlough.

  4. The guidance gives further detail on how to calculate pay, by way of worked examples. This will vary depending on whether or not there are fixed hours/pay (employers need to look at the hours worked in the pay period before 19th March 2020) and those with variable hours/pay (where you take the higher of the average number of hours in the tax year 2019 to 2020, or the corresponding calendar period in the tax year 2019 to 2020).

  5. Although 10th June was the deadline for placing new employees on furlough, it has been confirmed that does not apply to those returning from family related leave (provided the employer had put other employees on furlough by 10th June).

Whilst the inevitable complexity will be a headache, at least the concept of flexible furlough from 1st July will enable MILS members to better manage amendments to hours and working arrangements, as the motor industry gets back on its feet.


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

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