18 Jun 2020

Flexible Furloughing Update

202003 MHA Monahans Coronavirus

Under the original furlough scheme, it was not permissible for employees to carry out any work while on furlough (with certain exceptions for training).

The flexible furlough scheme now allows part-time working from 1 July 2020.

Flexible furloughing:

From 1 July, employers can bring back previously furloughed employees on a part-time basis. The employer pays for the hours worked and can claim the hours not worked under the Coronavirus Job Retention Scheme (CJRS).

The deadline to introduce employees to the original furlough scheme (CJRS) closes on 30 June but in order to qualify for this an employee must have been furloughed on or before 10 June. Employees furloughed on or before 10 June are eligible to benefit from flexible furlough.

In relation to the hours not worked, the CJRS grant will be based on the usual hours worked in a pay period. The wage cap (£2,500 in July and August) will be pro-rated to the hours not worked.

Employers and employees will be able to agree any working arrangements or shift patterns for flexible furlough purposes. The new arrangement must be confirmed in writing.

If an employee has returned from maternity, shared parental, adoption, paternity or parental bereavement leave after 10 June, employers can still choose to furlough them, even if the individual is being furloughed for the first time provided:

  • the employer has previously submitted a claim for any other employee in their organisation in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June
  • the employee started maternity, shared parental, adoption, paternity or parental bereavement leave before 10 June and have returned from that leave after 10 June
  • the employer included that individual on an RTI submission on or before 19th March 2020

Claims may be made on a monthly or shorter basis, subject to a minimum period of 7 calendar days. Claims cannot overlap a calendar month. Employers are only able to make 4 claims in a calendar month.

Employers will be liable to pay the normal employer’s NIC and pension contributions in relation to pay for hours worked.

To discuss this in more detail, please contact your usual MHA Monahans representative or call your local office.