The New Rules Of The Flexible Furlough Scheme
As has become a form of tradition, the government published the latest guidance on the flexible furlough scheme late evening on Friday, 12 June 2020.
From 30 June 2020, the Coronavirus Job Retention Scheme (CJRS) will close to new members and, from 1 July, employers will be allowed to operate a new “flexi furlough” scheme permitting part time work and part-time furlough. This means that employees no longer need to avoid doing any work for their employer but can work for some of the week and be furloughed for the rest, the proportions of which to be decided between the employee and employer.
During furlough days, employees are not permitted to undertake any work which generates revenue for their employer. Employees will continue to be allowed to complete training or volunteer work whilst on furlough.
Who is eligible for flexible furlough?
Only those employees who have been furloughed for at least three consecutive weeks between 1 March and 30 June 2020 are eligible for the new scheme. This means that the final date to furlough an eligible employee was the 10 June. However, those returning from family related leave such as maternity, adoption, paternity or shared parental leave do not need to have been furloughed prior to the 10 June cut-off date, provided that their employer has previously furloughed employees prior to the end of June.
Claims for furlough periods ending on or before the 30 June need to be submitted by 31 July as a separate claim. After 1 July 2020, employers cannot make claims that span different calendar months.
What are the new rules for flexible fulough?
Under the new rules, there is no longer a requirement to furlough an employee for a minimum of three consecutive weeks. The minimum claim period through the portal is seven calendar days. To that end, employers are only permitted to submit four claims a month via the portal and not 31.
Finally, from 1 July there is a limit on the number of employees that employers can claim for in any single claim period. The number claimed for cannot be higher than the maximum number of employees previously claimed for. For example, if an employer submitted claims for 20, 50 and 30 employees in previous claims, they will be limited to a maximum of 50 employees in later claims. Any eligible employees returning from family related leave, which are being furloughed for the first time can be added to that number.
Flexible Furlough – What do businesses need to do?
Businesses now need to consider how the flexi furlough scheme will work in practice. New arrangements will need to be agreed with staff and should be documented in writing. Systems will need to be implemented to record hours worked as records relating to the furlough scheme and any payments made under it must be retained by employers for six years.
How we can help?
If you are concerned about the effect that the new changes will have on your business, please contact Emma Spandrzyk in our employment team on 01530 564498 or via email at e.spandrzyk@timms-law.com. We offer competitive fixed fee and annual rates for employment advice covering such issues. Further details can be also found on our employment law page.
Emma Spandrzyk
June 2020