The changes to the Coronavirus Job Retention Scheme (CJRS) introducing Flexible Furlough come into effect from 1 July 2020, allowing employers to bring their employees back to work for any amount of time and on any work pattern.
Employers will now be able to claim furlough for the hours the employee does not work compared to the hours the employee would normally have worked in that period. If an employer wishes to flexibly furlough staff, they are required to keep a written agreement that confirms the new furlough arrangement, which must be kept for 5 years. Employers are also required to keep records of how many hours employees work, and the numbers of furloughed hours for 6 years.
Which employees can employers claim for from 1 July?
1. Employers can only claim for employees who have been on furlough for three consecutive weeks between 1 March and 30 June 2020
- The last date an employee could have started furlough for the first time was 10 June 2020
2. Employees returning from maternity, shared parental, adoption, paternity or parental bereavement leave after 10 June, can be furloughed providing;
- The employer has previously submitted a CJRS claim for other employees in the organisation
- The employee is being furloughed for the first time
- The employee was on the employers PAYE payroll on or before 19 March 2020
Working out an employee’s usual hours and furloughed hours?
If employers flexibly furlough their employees, they will need to calculate their employees ‘usual hours’ and record the actual hours they work as well as their furlough hours for each claim period. If an employee is not contracted to a fixed number of hours, or their pay depends on the number of hours they work, employers will need to work out their employees ‘usual hours’.
If you require support in calculating or submitting the furlough claim arising from this ever-changing government scheme, you can contact Hannah Dumenil, Head of Payroll at Rickard Luckin at email@example.com