Changes from 1st July
Employees will be able to do part-time work while on furlough. The Government subsidy will only apply to hours when the worker is not working during furlough, and the cap will be pro-rated to reflect any hours worked. The employer and employee must agree on what the working arrangements will be, and employers will be required to pay the worker's normal wages for the hours the employee has worked.
There is no obligation to use the "flexible furlough" element and employers are able to continue full furlough for employees until 31 October 2020
From 1 August employers will also be required to contribute to the wage subsidy on a phased basis
The Scheme is due to end on 31 October 2020
Employer Contributions
Under the original scheme for any period of furlough between 1 March and 30 June employers could claim 80% of the furloughed worker's regular wages, up to £2,500 a month, plus the associated employer national insurance contributions and minimum automatic enrolment employer pension contributions on that wage
Between 1 July and 31 July employers can continue to claim up to 80% of the furloughed employee's regular wages but only for the hours the employee is not working. The employer will be required to pay the worker's normal pay for any hours worked under a flexible furlough agreement including the employer national insurance contributions and minimum automatic enrolment employer pension contributions on that pay. HMRC will continue to fund employer national insurance contributions and minimum automatic enrolment employer pension contributions on the amount of the wage subsidy paid
Between 1 August and 31 August HMRC will continue to pay 80% of wages up to the £2,500 per month cap but employers will have to pay the associated employer NIs and pension contributions on those wages. For flexible furlough, the wage subsidy will be prorated to reflect the proportion of hours the worker is on furlough as against their usual hours
Between 1 September and 30 September HMRC will pay 70% of wages up to a cap of £2,187.50 per month. Employers will be required to pay the additional 10% of wages to make up a total of 80% up to the cap of £2,500 and also the employer NICs and pension contributions on the total wages. For flexible furlough, the wage subsidy and employer contribution will be prorated to reflect the proportion of hours the worker is on furlough as against their usual hours
Between 1 October and 31 October HMRC will pay 60% of wages up to a cap of £1,875 per month. Employers will be required to pay the additional 20% of wages to make up a total of 80% up to the cap of £2,500 per month and also the employer NICs and pension contributions on the total wages. For flexible furlough, the wage subsidy and employer contribution will be prorated to reflect the proportion of hours the worker is on furlough as against their usual hours
Information is also provided on the items below via the link:
- Employees eligible for Flexible Furlough
- How Flexible Working will affect the Wage Subsidy
- Moving an Employee to Flexible Furlough
- Changing a Flexible Furlough Agreement
- Record Keeping
- Claim Deadlines
- Maximum Number of Employees that can be claimed for
https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme