Below we have provided a breakdown of the changes that will take place on a month-by month basis and what that means for employers.

June 2020

• The scheme will close to new entrants from 30 June. 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 June.
• This means that the final date by which an employer can furlough an employee for the first time will be the 10 June, in order for the current three-week furlough period to be completed by 30 June.
• Employers will have until 31st July to make any claims in respect of the period to 30 June
• The Government will continue to pay up to 80% of furloughed employee’s wages up to a cap of £2500, they will still pay pension and NIC contributions with a minimum claim period of 3 weeks.

July 2020

• From 1 July employers will be able to bring back furloughed employees on a part time or reduced hours basis whilst still claiming for furlough for the days/hours not worked. For example, if a 5 day worker is brought back 2 days a week, the employer would pay 100% of their wages for the 2 days worked and for the 3 days not worked, be able to claim 80% of the employee’s wages through the Furlough Scheme.
• From 1 July the scheme will only be available to employers that have previously used the scheme in respect of employees they have previously furloughed.
• From 1 July, claim periods will no longer be able to overlap months, employers who previously submitted claims with periods that overlapped calendar months will no longer be able to do this going forward. This is necessary to reflect the forthcoming changes to the scheme.
• 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 current CJRS.
• Employers can continue to make claims in anticipation of an imminent payroll run, at the point payroll is run or after payroll has been run.
• The minimum claim period from 1 July will be reduced to 1 week. This allows for total flexibility for employers. Please be mindful that all changes to an employees working rota (days and times) must be agreed with the employee and best practice would be to agree these in a reasonable time frame and have them in writing.
• Employers will be able to make their first claim under the new part-time work scheme from 1 July.
• The Government will continue to pay up to 80% of furloughed employee’s wages up to a cap of £2500, they will still pay pension and NIC contributions.

August 2020

• The amount of grant provided by the Government will slowly start to taper off to reflect the number of employees returning to work. Businesses will be asked to contribute to the paying of employee’s wages from this month.
• The Government will continue to pay 80% of wages up to a cap of £2500, but employers must pay NIC and pension contributions.

September 2020

• The Government will pay 70% of employee’s wages up to a cap of £2187.50. Employers will pay NIC and pension contributions and 10% of wages to make up to 80% total and the £2500 cap.

October 2020

The Government will pay 60% of employee’s wages up to a cap of £1875. Employers will pay NIC and pension contributions and 20% of wages to make up to 80% total and the £2500 cap.

This advice is based upon the Governmental and ACAS guidance as at the time of this email.

If you have any questions on the employment guidance outlined above, or have any business related queries you would like our support with, then please feel free to contact us.