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  • Gemma Burke

Remember the deadline to place someone on furlough is the 10th June. Do you need to take action?

You will have seen last week, the Chancellor confirmed the details of the extension to the coronavirus job retention scheme. The scheme has been extended to run until October 2020 and over the next few months, changes to the scheme will start to come into effect.

The current scheme pays 80% of wages up to a maximum of £2,500 per month.

From 1st July a number of changes will come into force. The first thing to note is that no new employees can be added to the scheme unless they are on by 10th June 2020. This is because you need to furlough someone for a minimum of 3 weeks, the completion of that period would be 1st July.

From 1st July, part-time furlough has been introduced, meaning employees can work part time and be furloughed the rest. The cost of the hours worked, will be covered by the employer and the furloughed hours will continue, in July, to be covered by the government scheme.

Changes to the scheme over the next few months are:

· July – 80% of wages paid but part time furlough introduced, employer covers hours worked

· August – 80% of wages being paid but the employer will need to cover ERs NIC or pensions

· September – 70% of wages to a cap of £2,187.50 and employers will then pay 10%

· October – 60% of wages to a cap of £1,875 and employers will then pay 20%

Further details on the scheme and its new elements will be announced by the government on 12th June. This should provide clarity on the calculations for part time furloughs and give employers some guidance on this.

If you would like support on navigating the new furlough rules or on any other aspects of HR please reach out to us –

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