Talk To Us
Everything you need to know on

Flexible Furloughing and the Coronavirus Job Retention scheme

The new flexible furlough scheme is now live and business leaders across the country are having to make difficult decisions. BBC News reported that 12,000 people faced losing their jobs in cuts announced in a 48 hour period.  

Under the new scheme, you’ll be able to bring back previously furloughed employees for any amount of time and on any pattern of work and claim a grant to pay them for the hours not worked.

Limits on numbers of people you can furlough from 1 July

The numbers of employees you can furlough in any period starting from 1 July can’t exceed the maximum numbers of employees you claimed for under the old scheme. For example, if you have divided your 30-strong workforce into two groups of 15 each and rotated them on three-weekly furlough, you won’t be able to put all 30 workers on flexible furlough so that everyone works half a week.

How the scheme will unwind

The chancellor shared how the government intends to unwind the CJRS. Here is what you need to know so far. 

  • The scheme runs as it is until 31st July. If you have anyone furloughed until 30th June, you’ll need their consent to extend it past then
  • Then from 1st August, you’ll need to make Employer’s National Insurance and pension contributions
  • In September, you’ll also need to pay 10% of wages
  • In October, you’ll also need to pay 20%

The scheme has become more flexible. From July, any of your furloughed employees can return to work part-time. You’ll pay them for hours worked, while the furlough scheme covers the remainder of their hours

Who is eligible to be furloughed under the new flexible furlough scheme?

Only employees who have been furloughed for at least three weeks on or before 30 June under the old scheme can be furloughed after 1 July. The only exceptions to this are where parents return to work after taking maternity, shared parental leave, adoption, paternity or parental bereavement leave. 

The minimum length that they will need to be furloughed for to make a claim for them is now 1 week (this was previously 3) so rotation of people can be made on a much more frequent basis.

Read our guide

How do I move someone to the new flexible furlough scheme?

From 1 July, you’ll be able to bring back previously furloughed employees for any amount of time and on any pattern of work and claim a grant for the hours not worked. For example, if your employee normally works five days a week and you only need them in work for two, you can furlough them for the remaining three days. If business picks up, you might want them to work for three days and be furloughed for two. 

You need a “new written agreement” to confirm the new furlough arrangement. Here’s a template.

Template letter

How do I bring someone back from furlough?

There are broadly three main considerations as to how, when or even if you bring people back from furlough – resource, cash flow and cultural. If you decide to bring someone back, you need a “new written agreement” here’s a return to work from furlough letter template.

Template letter

How do I work out what I can claim?

The minimum length that they will need to be furloughed to make a claim for them is now 1 week (this was previously 3). There will be no limit or restrictions on the working patterns of furloughed employees.

You’ll need to decide if your employee has fixed or variable hours. If their pay depends on the number of hours they’ve worked, or they are not contracted to work a fixed number of hours, use the variable calculation.

You will need to calculate the amount you are claiming and you can submit a claim, in theory, every week. HMRC advise against this though and are encouraging businesses to make a claim in line with their payroll if they pay staff monthly. Each business is different and some calculations can be quite complex. If you need a hand, we can help.

In a single claim, you cannot claim for more people than you have put on any single one claim previously (for example, if you claimed for 5 in April, 10 in May and 8 in June; from July you would be able to make a claim for a maximum of 10 people on your claim)

If you don’t intend to ask staff to return to work and to remain fully furloughed, your pay calculations won’t change, although your contribution will increase from 1 August.

Help me with my calculations


Free HR helpline for Wow clients

We realised that HR advice was needed on the Coronavirus Job Retention Scheme and furloughing staff. We’ve arranged for Wow clients to be able to call and get free advice on this and any other HR queries they have. We’ve emailed all Wow clients the details on how to access the helpline. Please let us know if you haven’t received the details.


How we can help any business with the Coronavirus Job Retention Scheme

  • Help you with your calculations
  • Run your payroll for you through this period
  • Help you ‘unfurlough’ a member of your team
  • Introduce you to HR advisors/employment lawyers should you need to

If there’s anything else you need help with not listed above, please ask, and we’ll find a way.

Help me please

 


Key resources on the Coronavirus Job Retention Scheme:

  1. Overview of the key points of the scheme on the GOV.UK site 
  2. Advice on how to navigate the end of the furlough scheme
  3. Our guide to the key changes of the Coronavirus Job Retention Scheme
  4. Template letter to support moving someone to the flexible furlough scheme
  5. Template letter to support bringing someone back from furlough
  6. (Wow clients have access to our Expert HR helpline)

Please always remember

The resources contained in our Support Hub are intended to help you and your business and are no substitute for professional HR & legal advice. Each business is different and you should get professional advice relating to your specific circumstances. If you’d like to be put in touch with someone, please let us know.

Find out more

Book a call at a time that suits you

Award Winner

Platinum Partner