From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time under the Coronavirus Job Retention Scheme (CJRS).
This announcement comes on top of the news that the scheme will be extended until October.
The new flexibility will be available a month earlier than expected to help employers as teams come back to work. Individuals firms will be given freedom to decide the hours and shift patterns their employees work, so that they can pick the best approach for them - and will be responsible for paying their wages while in work.
James Wild MP -
I welcome this additional flexibility that the government has announced for the furlough scheme.
Employers across North West Norfolk have been asking for a more flexible approach to allow them to make use of their employees where they can, and the government has listened.
It is important that hospitality and tourism businesses can safely re-open the furlough scheme winds down""
In addition, from August 2020 the scheme will be gradually tapered. While the government will continue to pay 80% of people’s salaries for June and July, from August businesses will be asked to contribute. However, individuals will continue to receive 80% of their salary for the time they are unable to work.
So far, the CJRS has helped 1 million employers across the UK furlough 8.4 million jobs, protecting people’s livelihoods.
Further information
The scheme updates mean that the following will apply for the period people are furloughed:
- June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
- August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
