Future of Furlough

Updated 15 June 2020: We received further guidance from HMRC late last Friday evening. Everyone on our mailing list received our update on Saturday; if you wish to be added to this list, please just get in touch. 

June

In June the scheme will continue as it has done since March 2020 when it began. As our previous blog on furlough has outlined, this means that employers do not need to make any contribution (but if they want to top up to 100% they can at their discretion) and the government will pay up to 80% of employee’s salary up to a cap of £2500.

An important date this month is 10 June 2020 which is the deadline for any new furloughed staff; if you want to take advantage of the new flexible furlough which starts on 1 July, they need to already be furloughed on this date. However, this deadline does not apply to those who are returning from parental related leave (maternity, paternity, shared parental, adoption etc.); they can still be furloughed when their leave ends. 

July

In July, employers are not expected to contribute to an employee’s salary, unless they decide to undertake the part time furlough and part time working option which is available from 1 July 2020.

This is called ‘flexible furlough’ which means that from 1 July, employers can come to their own arrangements with their staff about coming back to work part time if there is now some workload due to the lift in lockdown restrictions.

We strongly recommend you consult with all affected staff and agree any changes to working hours in respect of flexible furlough, or not, in writing with each employee and retain these for 6 years. The updated guidance has made it clear that such agreements should be in line with both employment law and equality and discrimination legislation. Therefore, it is advisable that employers consider how flexible furloughed arrangements may have an impact on employees that are parents, pregnant women and those with disabilities. 

Flexible furlough would mean that the employer pays an employee for the part time hours worked and the furlough scheme will contribute up to 80% for the unworked hours, based on normal hours worked in that claim period. This can be in any method an employer wants (e.g. 60:40, 50:50, etc). An employer will need to report and claim for a minimum period of at least a week, but it can be for longer periods such as monthly or two weekly cycles if that’s better for employers. An employee cannot work for their employer during their remaining unworked and furloughed hours. 

The three-week minimum furlough period will no longer apply after 1 July 2020 where employees are flexibly furloughed; employers will be able to agree what hours employees will work and on what shift pattern on a weekly basis. 

If there is no intention for employees to return on a flexible basis in July, then then furlough schemes continue to exist as it currently stands 

August

In August, the 80% government contribution will remain; the change here is that employers will be required to pay employer national insurance and employer’s pension contributions which, for the average claim, accounts for only 5% of total employment costs.

Flexible furlough will also continue throughout August.

September

In September, the government contribution will reduce for the first time and they will only contribute 70%, with the employers contributing the remaining 10% in addition to NI and pensions contributions.

Flexible furlough will also continue throughout September.

October

In October, the government contribution will be reduced to 60% (up to £1,875), whilst employers will contribute 20% in addition to NI and pensions contributions.

Flexible furlough will also continue throughout October, but it is due to end on 31 October 2020.

New guidance on how to calculate furlough payments 

The government have recently provided new guidance on the steps that should be taken prior to calculating a claim using the Coronavirus Job Retention Scheme. These include:

  • Employers should decide the length of the claim period – it is suggested this should be done by matching with payroll dates;
  • The usual and furloughed hours of an employee must be worked out. 
  • The scheme rules are subject to change each month. Therefore, a separate claim must be made every month separately – claim periods cannot overlap.
  • Employees returning from sick leave or family related leave should be calculated on their normal pay before that leave, not their pay whilst on leave. 

Self-Employment

Good news for the self-employed – the Self Employment Income Scheme will be extended for a further three months which takes them to the end of august.

The closing date for current claim, for the last 3 months, is 13 July. We have created a video on the original application process below.

Related Articles

Health and safety dismissals: An employee’s right to stay safe during a pandemic

LGBT+ History Month

Keep Informed: New case criticises workplace “banter” and awards £54,000 for race and sexual orientation discrimination

Women Through the Cracks

SSP and Travel

June’s Top 10 FAQ’s

Hill v Lloyds Bank: Discrimination and Mental Health

Pride month – LGBT legal leaders

Test and Trace update

Furlough Fraud

Commission under Furlough

Marital Discrimination: What Happens when Your Employees Split?

Disability & Shielding

Future of Furlough

Returning to work safely following Covid-19

A Four Day Week – Is It The Future?

Utilising Technology for Mental Health Support during Covid-19

#BLACKLIVESMATTER – HR professionals and their role in tackling racism, and what we are doing at Thrive Law

The importance of Redundancy Consultation – the problem with Jamie’s Italian

LGBTQ+ Figures in the Legal Sector

Calculating notice pay for employees on furlough

The Future of Furlough

Test and Trace: Employer’s Obligations

Life in Lockdown: How it has impacted the #ThriveTribe

Life in Lockdown: The Distressing Rise in Domestic Abuse and How Employers Can Help

Life in Lockdown: The Impact of Grief and Employees’ Rights

Managing my Mental Health as a Mother

Life in Lockdown: NHS Staff and Possible PTSD After COVID-19

Health Care Workers and PPE Concerns: What are Their Duties and How Are They Protected?

The effect of lockdown on diversity in the workplace

Observing Ramadan during Lockdown

Emergency Volunteering Leave

Dealing with redundancy during COVID-19

Unfurloughing employees

Sleep and mental health

Raising concerns amid Covid-19: Are Employees Protected?

Maintaining your teams Mental Wellbeing (whilst working from home/Furlough)

Workplace Safety: 10 Important Steps to Making Your Workplace Safer for Employees

Airline crew launch “Project Wingman”

Statutory Sick Pay and Coronavirus

Why is sleep so important?

Pregnancy, Maternity and Furlough

Flexible working – is it possible in a law firm?

The superhero firms helping out in the coronavirus crisis

What are the Signs of Stress?

Statutory Duties owed by a Director of a Company; and How Do They Work with Furlough?

A barristers analysis of holiday pay and furlough

Coronavirus and Apprenticeships

Furlough and Annual Leave: How does it work?

Vulnerable and shielded employees; what are your rights?

The Coronavirus Act 2020

Workplace Accessibility: Is your workplace accessible to people with disabilities?

Coronavirus – FAQ’s

In the News: Coronavirus Employer obligations

UK in Lockdown – What You Need to Know

The F Word – Furlough

Short Time and Layoffs

School Closures

The Impact of Coronavirus on Employment – The Home Working Revolution

How to Prepare for a Remote Workforce

Coronavirus is contagious, but panic is too

What are the different types of Whistleblowing?

The Coronavirus and Flexible Working – What Your Organisation Can Do

Key Employment Law Changes in 2020

IR35 Changes – What do you need to know?

In the Media: Fairhall v University Hospital of North Tees & Hartlepool Foundation Trust

There’s a Storm Coming: Do You Have an Adverse Weather Policy for Employees?

May Bank Holiday Change Blog- All Change for 2020!

Can you sack someone who works in a supermarket and refuses to handle money?

In The News: Bereavement Leave

The Thrive Tribe’s Christmas Holiday

In The News: Discrimination and Equal Pay

Keep Informed: Its Beginning to Look A Lot Like Brexit – What will the Withdrawal Bill Mean for Employment Rights?

Bring Your Dog to Work – For More Than Just a Day?

In the News: Hangover Days

Political Discourse and Voting at Work: What are Employees’ Rights?

Vegetarianism & Veganism – Are they protected as Philosophical Beliefs?

Diversity: More than just Box-Ticking and Policies

Drugs and Alcohol Policy: Support or Discipline?

Bullying and Harassment in the Workplace

Yorkshire Legal Awards: Diversity and Inclusion Award

Yorkshire Post Excellence in Business: Social Mobility Award

Topic UK Magazine October 2019

Calling Time on the Booze Culture

Mental health discrimination is limiting the opportunities in the workplace for those who have served in the armed forces

How to Thrive – Top tips to reduce stress in your organisation

Asda’s Employment Contract Changes: Fair or Foolish?

Keep Informed: MacDonald’s CEO dismissed for relationship at work

How to Handle Allergies in the Workplace

Menopause in the Workplace

The 4 Day Week Report

Feeling SAD?

Surviving or Thriving?

Keep Informed: Women and Equalities Committee proposes changes to enforcement of discrimination rights

The Good Work Plan

Working 9 to 5, 4 Days a Week…?

Is your organisation ready for Generation Z?

Thriving In The Workplace and the #OneMind Petition

Dyslexia in the Workplace

Overpayments and Deductions from wages

The UK’s increasingly diabetic workforce

TheBusinessDesk: Further expansion for law firm; Promotions at engineering specialist; and more

LGBTQIA+ in the Workplace

Eid in the Workplace

Neurodiversity in the Workplace

Leeds & Yorkshire Lawyer Magazine – 11th April 2019

Recruiting Times – 12th February 2019 Employment contracts: What to check for before accepting the job

HR News – 6th February 2019 Over half of working Brits have accepted a job offer without checking the contract first.

Yorkshire Legal News – Thrive Law continues rapid growth – 12th November 2018

BR Online: Employee wellbeing and human capital – November 2018

MMB Magazine – 5 November 2018

The Telegraph- Business 24 October 2018

H & N Magazine 3 October 2018

South Leeds Life 3 October 2018

The Yorkshire Post 10 October 2018

Article in People Management- “Employers must do more to tackle male ‘stigma’ around shared parental leave” – 30th July

The Business Desk- “Independent law firm launches in Yorkshire”– July 16th

Interview with Ascension Club Leeds- July 11th

Law Society Gazette – 3rd May 2018

Stylist Magazine – 21st May

Yorkshire Post – 2 May 2018 – Greg Wright The Case for introducing mental health first aiders at work

What Is YOUR Workplace Doing for Ramadan?

April Updates in Employment Law

Thoughts On “Gagging Orders”

Time to Talk Day 2019

The Loneliness Epidemic

Thrive’s round up of 2018!

To talk or not to talk?

Why employers should exercise caution when using NDAs

Being your true self at work boosts mental wellbeing and performance

How to spot and eliminate risks of office workplace accidents

Why The Best Investment Is In Your Mental Health

Supporting LGBT+ Mental Health in the Workplace

What your employer needs to know when your child has a mental health illness – guest blog

The Do’s And Don’t For A Happy Employee – Guest Blog

HR leading the way into GDPR compliance for businesses

Dealing with stress in the workplace

Welcome to our new website and blog!