Furlough Scheme Key Dates

Before the COVID-19 pandemic, businesses had not heard of the term “furlough”. Since the government launched its Job Retention Scheme, businesses have had to contend with a raft of changes to legislation around furlough and a series of amended guidance notes dealing with those changes.

When faced with so many updates, it is easy to lose track of key dates. To help you keep a track, below is a summary of some of the dates that businesses need to be aware of if they are going to use the furlough scheme going forward:

10 June 2020:

This was the last day that you could furlough a member of staff for the first time (with the exception of those returning from family related leave such as maternity, adoption, paternity or shared parental leave).

1 July 2020:

The Government launched its Flexible Furlough Scheme allowing employers to bring back furloughed workers part time and then claim through the Scheme for the remainder of contracted hours not worked.

Until the end of the month, the government will continue to pay 80% of wages up to a cap of £2,500 as well as employer National Insurance and pension contributions.

1 August 2020:

The government will continue to pay 80% of wages up to a cap of £2,500 per month.

At this point, employers will become responsible for paying employer National Insurance and pension contributions. Previously, employers were able to claim for these under the Scheme.

1 September 2020:

From this point, the value that employers can claim for furloughed workers under the Scheme starts to diminish.

The government will contribute 70% of wages up to a maximum of £2,187.50 per month.

Employers will continue to pay employer National Insurance and pension contributions.

Employers must also top up the government’s contribution to ensure that employees receive at least 80% of their wages, up to the maximum of £2,500 per month (or more, depending on what has been agreed with the employee).

1 October 2020:

The government will contribute 60% of wages up to a maximum of £1,875 per month.

Employers will be responsible for paying employer National Insurance NICs and pension contributions.

Employers must also top up the governments contribution to ensure that employees receive at least 80% of their wages up to the maximum of £2,500 per month (or more, depending on what has been agreed with the employee).

31 October 2020:

Unless there are further announcements to extend the Job Retention Scheme, this is the date that the Scheme will officially close.

If you are concerned about the effect that the changes to the furlough scheme will have on your business, please contact Emma Spandrzyk in our employment team on e.spandrzyk@timms-law.com or 01530 551 407. We offer competitive fixed fee and annual rates for employment advice covering such issues. Contact us for a quote now.

Emma Spandrzyk
16th July 2020