From 1st July, whilst still appreciating the benefits of the Furlough Scheme, employers will be able to benefit from the option of bringing employees back to work on a part time basis. This is one month earlier than had previously been announced.
Whilst working, employers will be required to pay their employees at their full rate of pay. The employment must be for a minimum of one week and has to be confirmed with the employee in writing.
The announcement from Friday sets out the next five months for Furlough claims;
June – No change to existing Furlough arrangements
July – Government continues to pay 80% of furloughed wages, up to a limit of £2500, plus employer NI & Pension contributions. Employer will pay in full for any hours worked by employees.
August – Government will no longer pay employer NI or pension contributions
September – The government contributions for furloughed pay will be cut to 70% with a cap of £2,187.50. Employers will be required to pay 10% of furloughed pay to be capped at £2,500.
October – Government contributions will fall to 60% capped at £1,875. Employers will be required to make up the additional 20% to a cap of £2,500.
It should also be noted that the furlough scheme closes to new entrants from 30th June. This means that the final date you can furlough an employee is 10th June (three weeks being the minimum furlough claim period).