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Mogers Drewett

Mogers Drewett:
Changes to the furlough scheme

Are you ready for the new Flexible Furlough Scheme? (FFS)

Employment Partner, Sean McDonough highlights the key changes and more importantly the key deadlines over the next few months to enable employers to prepare to return employees back to work.

July

The Coronavirus Job Retention Scheme (CJRS) closed to new entrants on 30 June, so only employees that have previously been furloughed for a full three week period prior to 30 June will now be eligible. 

From 1 July, employers can bring furloughed employees back to work part time, while still being able to claim CJRS grant for the hours not worked under the new Flexible Furlough Scheme (FFS).

Claim periods must start and end within the same calendar month, employees cannot make claims that cross calendar months and the minimum claim period has been reduced from 3 weeks to 1 week.

August

The Government will continue to pay 80% of wages up to the £2,500 cap for furloughed employees but employers will take over payment of employer NI, pension contributions and, additionally the salaries of part time workers.

September

In September, the Government contribution will lower to 70% of wages up to a cap of £2,187.50 for furloughed employees.  Employers will continue to pay employer NI and pension contributions, and, additionally, must now pay 10% of wages to make up to 80% of the total wages, up to the cap of £2,500 plus salaries of part time workers.

October

Finally, in October, the Government contribution will lower again to 60% of wages up to a cap of £1,875 for furloughed employees. Employers will continue to pay employer NI and pension contributions, and will have to pay 20% of wages to make up to 80% of the total wages, up to the £2,500 cap plus salaries of part time workers.

For further guidance on flexible furloughing and how employers should calculate claims please contact Sean McDonough on 01225 750 000 or email sean.mcdonough@mogersdrewett.com. It is better to ensure that you have this correct than risk having to re-pay any of the grant at a later time.

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