Furlough Update June 2020


The Government have announced that the Coronavirus Job Retention Scheme is not to be extended after October this year and will gradually be wound down. Further details are to be released on 12 June 2020 but for now, this is what we know.


For June and July, the government will continue to pay 80% of furloughed employees' wages up to £2,500 and will also continue to support with NICs & Pension contributions.


In August employers will be required to cover the NICs & Pension contributions for furloughed employees.


In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will also pay employer NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.


In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will also pay employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.


From 01 July 2020 furloughed employees will be able to return to work part time without affecting the amount their employer can claim.

Remember, any amendment to contractual terms must be agreed and put in writing.

Before you bring anyone back into the workplace, ensure you have all reaosnably practicable safety measures and contractual amendments in place. If you need any support with this, please get in touch.


Stay safe!

Shona

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