CHANGES TO THE GOVERNMENT FURLOUGH SCHEME

On Friday, 29 May 2020 Rishi Sunak announced updates to the Coronavirus Job Retention Scheme.  The main points announced at the Chancellor's press conference include:

• The 10 June 2020 will be the last day that employers can place their employees on furlough.
• From 01 July 2020, employers will be entitled to bring employees on furlough back on a part-time basis whilst remaining furloughed for the remaining time.
• From 01 August 2020, employers will have to pay their employees' national insurance and pension contributions.They will not be able to claim this back from HMRC.
• From 01 September 2020, HMRC will only reimburse employers for 70% of their employees' wages, up to a maximum of £2,190.Employers will have to top up their employees' wages to 80% or more dependent upon the furlough agreement which was entered into by the employer and employee.
• From 01 October 2020, HMRC will only reimburse employers for 60% of their employees' wages, up to a maximum of £1,875.Employers will have to top up their employees' wages to 80% or more dependent upon the furlough agreement which was entered into by the employer and employee.
• The furlough scheme is still due to close on 31 October 2020.
• The self-employed grant is also being extended, with applications opening in August for a second and final grant.

The Treasury Solicitor is yet to update the Treasury Direction and Employer's Guidance which will no doubt provide further details on the practicalities of the furlough scheme amendments.

If you have any questions please do not hesitate to contact a member of our Employment Law Team on 01522 814638.