New Flexible “Furlough” How will it work?

On 29 May 2020, the Chancellor announced changes to the Scheme.
Existing scheme closure and ‘flexible furlough’

  • The old Scheme will close to new entrants on 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.

  • Employers who want to place new employees on furlough must do so by 10 June so the minimum 3 week period required can be achieved.

  • From 1 July, flexible furlough can be used.

  • For example, an employee who works 5 days a week can be brought back to work for 2 days a week. The employer will pay wages for those 2 days as normal. The Scheme will “continue to cover” the employee for the other 3 working days.

There will be no change to the level of financial assistance provided by the scheme during June and July.

  • From the start of August, employers will begin to contribute to furloughed employees’ wage costs on a phased basis.

  • The scheme will close at the end of October.

More guidance is expected on 12 June. 

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