In our latest employment Q&A session we were once again joined by Marianne McJannett of TC Young, this time to discuss some of the key changes and challenges foreseen with the introduction of the new flexible furlough scheme.
Having started talking about furlough back in April, it was good to look back and see where things started and how they have progressed over the past few months.
Marianne took us through the key changes to the current Job Retention Scheme:
- The closing date has passed for enrolling new entrants to the furlough scheme – therefore if employees haven’t been furloughed before the 10th June 2020, they are no longer eligible for furlough.
- The minimum furlough period is changing from 3 weeks to 1 week from 1st July 2020.
- Employers are now able to furlough someone part time from the 1st July 2020. someone who would normally work full time hours can now be furloughed part time for example the employee could work 2 days instead of 5 and be on furlough for the remaining 3 days – as long as this is all agreed in writing and employers pay staff their normal rate of pay when they are working for the Company.
- Employers will be liable to pay pension and national insurance contributions from 1st August 2020.
- Contributions are changing to 70% government contribution and 10% employer contribution from 1st September 2020.
- Contributions are changing to 60% government contribution and 20% employer contribution from 1st October 2020 until 31st October 2020 when the scheme is set to end.
We touched on some of the considerations that employers should make when keeping staff on furlough for the duration of the scheme if a return to work is unlikely. Should you really be keeping someone on furlough until the end of October when the end result is likely to be redundancy?
If you missed our latest webinar or if you want to watch the full webinar and recap on the discussion and some of the questions put to Marianne, you can watch here.