From 1st July 2020, the rules in relation to furlough leave changed. For employers who want to make use of the job retention scheme over the next period, here is an update on the latest position.
Since 1st July 2020, furloughed employees have been able to return to work on a part time basis. Employers pay in full for days worked and can claim under the coronavirus job retention scheme for days not worked, subject to the relevant caps.
Also since 1st July, employers can only furlough employees who were furloughed for at least 3 weeks prior to 30th June 2020, with the exception of those on statutory family friendly leave.
There are now contributions towards furlough pay required from employers. Employers are required to pay the following contributions towards furloughed employees' 80% (subject to cap) furlough pay:
- August 2020: The employer NICs and employer pension contributions on the furlough pay.
- September 2020: The employer NICs and pension contributions on the furlough pay and 10% of employees' pay, capped at £312.50. The government will pay 70% of employees' pay, capped at £2,187.50.
- October 2020: The employer NICs and pension contributions on the furlough pay and 20% of employees' pay, capped at £625. The government will pay 60% of employees' pay, capped at £1,875.
The new caps are obviously proportional to the hours not worked.