Childcare Counsel - new furlough rules

Hannah Belton
Tuesday, June 30, 2020

Hannah Belton, director and head of employment law at Morgan LaRoche, on how the furlough scheme is changing

Hannah Belton, director and head of employment law at Morgan LaRoche, on how the furlough scheme is changing
Hannah Belton, director and head of employment law at Morgan LaRoche, on how the furlough scheme is changing

How has the Flexible Furlough Scheme changed for employees returning to work?

From 1 July, businesses will be allowed to bring furloughed employees back part-time in the next chapter of the Coronavirus Job Retention Scheme.

The onus will be on businesses to determine what hours and shift patterns staff will work. They will pay staff an apportionment of their wage in respect of the hours they work, and claim a top-up from the Government for the difference up to the relevant capped amount.

The cap is 80 per cent or £2,500 until the end of July. From 1 August, the scheme will change as follows:

  • 1 – 31 August: Employers must pay NI and pension contributions in full but can still claim for 80 per cent/£2,500 maximum of furloughed staff’s salary for the hours the employee doesn’t work.
  • 1 – 30 September: Employers can only claim for 70 per cent at a reduced cap of £2,190. Employers have to top up the additional 10 per cent.
  • 1 – 31 October: Employers can only claim for 60 per cent at a reduced cap of £1,875. Employers have to top up the additional 20 per cent.

Will staff have to be informed about the social distancing measures their employer is taking?

All employers must comply with the Government health and safety guidance on social distancing. The Government has produced specific guidance for various sectors, which is continually being updated. All are expected to do a risk assessment.

Consultation is encouraged, and at the very least the steps employers have taken to ensure that safety guidance has been followed should be communicated with staff.

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