The government published more guidance on Friday 12 June on changes to the Coronavirus Job Retention Scheme which now includes information about how flexible furlough will work from 1 July 2020.
From 1 July it will be possible for your employees to work on some days (or parts of days) and be furloughed for others. For example, an employee who previously worked 9 – 5, Mondays – Fridays, could work on Mondays, Tuesdays and Wednesdays but be furloughed on Thursdays and Fridays.
Unfortunately, calculating the grant for flexible furlough is quite complicated. Whilst the concept of flexible furlough will be exceptionally helpful to businesses, the calculations and rules are quite complex and might prove to be a challenge for some.
You’ll need to know the following to do the actual calculation:
We recommend looking at the government worked examples available here.
You will need to put a new flexible furlough agreement in place with the employees you want to put on flexible furlough and this should be in writing.
Your employees on furlough are still not allowed to do any work for you.
You will need to keep a record for six years of the usual hours (including your calculation for ‘usual hours’) worked by each of your employees as well as the actual hours worked from 1 July.
Just because flexible furlough is an option, doesn’t mean that you have to use it. You can still use the original approach to furlough with no part time hours or leave employees on furlough.
To read the full government guidance, click here.
To read more about the changes coming from 1 August, click here.
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