On Friday 12 June, HMRC published updated guidance in respect of the Coronavirus Job Retention Scheme.
These updates follow Chancellor Rishi Sunak’s announcement on 29 May, see our Alerts here to recap:
- Changes to the Coronavirus Job Retention Scheme – Part 1
- Changes to the Coronavirus Job Retention Scheme – Part 2
Why is this important?
The updated guidance covers the Flexible Furlough Scheme which starts on 1 July.
Employers will be able to bring furloughed employees back to work part-time, provided the working pattern has been agreed with the employee. Employers must keep written agreements which confirm the working arrangements. Employers will need to pay 100% of pay for hours worked and then claim for the hours not worked through the Scheme.
Employers will only be able to furlough employees who have already completed the minimum 3 week furlough period by 30 June (although this does not apply to employees who are returning from certain family related leave).
From 1 July, there is no longer a minimum furlough period (previously 3 weeks). However, any claim submitted must be for a minimum period of 7 calendar days (unless it relates to days at the beginning or end of the month). Claims for periods up to 30 June must be submitted by 31 July (as a separate claim to those hours claimed for during July).
From 1 August, employers will need to start contributing to employees’ pay (see our previous Alert).
The Scheme will end on 31 October.
What should you do?
- Undertake a review of your business needs and decide whether you wish to bring any employees back part-time.
- Agree the new working arrangements with those employees and keep a copy of the written arrangement.
- Keep records of the hours worked as well as the furloughed hours. Ensure claims are submitted in accordance with the updated requirements.
- Familiarise yourself with the updated obligations of the Scheme, particularly in terms of employers’ contributions from 1 August.
- If you think that you may not have enough work for all of your employees from 31 October, you should plan for this now (in order to avoid incurring unnecessary employment costs from August).
Please get in touch if you wish to discuss the options to help avoid legal challenges.