I have been asked by The Law Society to distribute the following guidance on the Furlough Scheme:
On Friday the Chancellor made an important announcement about the future of the Coronavirus Job Retention Scheme. The key points were:
- The 10 June is the final date an employer can furlough an employee for the first time. After then the Scheme will close for new entrants
- From 1 July the Scheme will only be available to employers that have previously used the Scheme in respect of employees they have previously furloughed.
- From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim the grant for their normal hours not worked. More details as to how the new flexible element of the Scheme will operate will be published in mid-June.
- To still be eligible for the grant employers must agree with their employee any new flexible furloughing arrangement.
- From August 2020 the level of the grant will be slowly tapered. Employers will need to contribute between 10 – 20% of the furlough salary, alongside full employer NICs and pension contributions.
We have updated our guidance on furlough to reflect the Chancellor’s announcement. We will update it further once the details of how part-time/flexible furlough will operate.
Relationship Management Executive
Midlands & South West
The Law Society
President of the Plymouth Law Society