Furlough Scheme Set to Change

With recent changes and updates received from both Westminster and the Senedd, there are questions about what this means for businesses who may be using the Coronavirus Job Retention Scheme to furlough employees. 

As a brief overview the following changes have been announced:

1. The last date an employee can be entered onto the scheme is 10th June 2020, employers who need to transition additional employees onto the scheme will need to ensure the discussions with employees and required paperwork is in place before this date.
2. The scheme will look the same as previous months for June 2020.
3. In July 2020 the concept of ‘flexible furlough’ will be introduced, this means furloughed employees’ time can be split between work and being furloughed.  The initial announcements confirm that businesses will be able to determine how an employee’s time is split, we await more information on this point.
4. Effective August 2020 employers must start to pay national insurance and pension contributions for those employees furloughed. 
5. Starting in September 2020 the amount reclaimable to cover wages will drop by 10% on a monthly basis for employers.  This will be 70%  for September and 60% in October. Employers will still be obligated to top up to at least 80% of wages for furloughed staff.  If your existing furlough leave agreements confirm you pay more than 80% the employer will still need to do this unless revised furlough leave agreements are agreed with employees. 

The scheme will close 31st October 2020.
 
If you have any questions about what this means for you our recent ‘foggy over furlough’ Q&A has been updated and can be found here.

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