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Furlough update - moving to flexible furlough

Posted 11/06/2020 by Amy Patterson

With the coronavirus having a significant impact of a large proposition of UK businesses, many employees are now reliant on the UK government's furlough scheme, which was officially introduced on the 20th April. Over 8.7million workers have now been furloughed since the beginning of the crisis, amounting to over a quarter of the UK's entire workforce.

On 12th May the government announced plans to extend the furlough scheme by four months to October, with many businesses concerned they would be unable to recover enough to re-employ staff within the original two-month time-frame.

A survey published by the British chamber of commerce shows that two-thirds of UK businesses have used the scheme with one in three now placing at least 75% of their employees on furlough.

So, what's next?

"As of the 1st July employers can bring back to work employees that have previously been furloughed for any amount of time, while still being able to claim for their normal hours not worked." (gov.uk)

When is the cut-off?

The scheme closes for new applications from the 30th June, after that they will only be able to furlough employees that have been furloughed for three full weeks before this date (10th June).

The key points for you to consider are:

1. Closed to new entrants from June 30th
Only employees that have been furloughed for a full three-week period before this date will be eligible.

2. Previously furloughed staff are eligible
Any member of staff is eligible as long as they have been furloughed at any point between the 1st March and 30th July not only the period from 10th June to 30th June to be eligible.

If you need advice on the next stages for your business, the team at Farnell Clarke can help with a wide range of offerings from HR to budgeting for the future.

Get in touch now for a free of cost 30-minute consultation.

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