Flexible furlough scheme: key dates in 2020

30th June - the scheme closes to new entrants

Employers will only be able to furlough employees that have already been furloughed for a full 3 week period before 10th June by that employer. The employee does not, however, need to be on furlough from 10th June if they have already had a completed furlough period.

1st July - employers can start bringing back furloughed staff

The financial terms of the scheme continue without change, but employers can start bringing back furloughed staff on reduced hours. Employers will be required to pay employees for the hours worked.

1st August – the Government will pay 80% of wages

The Government will pay 80% of wages up to a cap of £2,500, but from now the employer will be required to pay an employee’s National Insurance contributions and pension contributions.

1st September – the Government will pay 70% of wages

The Government will pay 70% of wages up to a cap of £2,187.50. The employer will continue to pay employee National Insurance contributions and pension contributions. However, the employer will have to pay 10% of wages to make up the 80% total, up to a cap of £2,500 (if this is what has already been agreed).

1st October – the Government will pay 60% of wages

The reduction continues and the Government will pay 60% of wages up to a cap of £1,875. The employer will continue to pay National Insurance contributions and pension contributions. However, the employer will also have to pay an additional 20% to top up to the 80% total, up to a cap of £2,500 (if this is what has already been agreed).

31st October – furlough scheme ends

The scheme will close and employers will need to bear all employee costs again.

It remains to be seen whether the scheme will be subject to yet further amendments. We will continue to bring you further updates when necessary.

For advice on this or any other employment matter please contact us at employnent@winstonsolicitors.co.uk or call Winston Solicitors on 0113 320 5000