Flexible Furlough Leave

As of midnight on 24^th May 2020, 1 million employers had placed their employees on furlough leave under the Coronavirus Job Retention Scheme (CJRS). The total value of claims made was £15 billion and the Government estimates that this has protected around 8.4 million jobs. On 29^th May 2020, Rishi Sunak announced the creation of ‘Flexible Furlough Leave’, an attempt to create a transitional period to allow employees to gradually return to work.

The flexible furlough scheme means that:

• From 1^st July 2020, 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 furlough leave grant for any normal hours they have not worked. Employers will be able to agree any working arrangements with previously furloughed employees.
• When claiming the grant for furloughed hours, employers will need to report and claim for a minimum period of a week. This is a minimum period and those making claims for longer periods such as those on monthly or two weekly cycles will be able to do so.
• To be eligible to reclaim the grant, employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing.
• Employers can claim the grant for the hours their employees are not working calculated by reference to their usual hours worked in a claim period. Further details are going to be provided by the Government on 12^th June 2020;
• Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
• For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts;
• The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the CJRS. An employee will only be able to use the flexible furlough leave scheme for the employees it has already furloughed.

The changes to the CJRS means that employers will not be able to place any new employees on furlough leave after 30^th June 2020. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30^th June. This means that the final date by which an employer can furlough an employee for the first time will be 10^th June 2020, in order for the current three-week furlough period to be completed by 30^th June. Employers will have until 31st July to make any claims in respect of the period to 30^th June.

If you would like assistance in placing your employees on furlough leave, or if you are an employee who has been placed on furlough leave and would like to discuss your rights, please contact Ben Stanton on 01908 660966 / 01604 828282 or by emailing ben.stanton@franklins-sols.co.uk.