Job Retention Scheme and Flexible Furlough New Rules

Please find below the most up to date FAQs @ 1st June 2020.

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Rishi Sunak, Chancellor, announced on Friday 29th May that the current Job Retention Scheme (the Scheme) would remain unchanged until 31st July. After this point, Employers would be asked to contribute to the costs of the scheme for all furloughed employees as follows:

  • Up to the 31st July 2020 the Scheme will continue unchanged with the Government paying 80% of salary up to a maximum of £2,500.
  • From 1st August 2020 onwards, employers will be required to pay employers NI and Pension contributions. The Government will continue to pay 80% of salary up to a maximum of £2,500.
  • From 1st September 2020, employers will be required to pay 10% of salary, in addition to the employers NI and Pension contributions. The Government will pay 70% of salary up to a maximum of£2187.50.
  • From 1st October 2020, employers will be required to pay 20% of salary, in addition to the employers NI and Pension contributions. The Government will pay 60% of salary up to a maximum of£1,875.00.
  • The Job Retention Scheme ends on the 31st October 2020.

Yes. The Chancellor also announced that there will be a “Flexible Furlough" Scheme that will run concurrently with the Job Retention Scheme.

The Scheme allows employers to bring back employees part-time and pay them for the hours worked. The Government will then top up the wages. Further details expected to be announced on 12th June 2020.

To be able to use this Scheme, the employer must claim for an employee for a minimum of one week at a time. Longer periods can be recorded if necessary.

Further details are expected to be announced on the 12th June 2020.

Employers will need to record the total contracted hours an employee would normally work in a claim period and also the hours actually worked.

Further details are expected to be announced on the 12th June 2020.

The employer must pay for the hours worked by the employee. You must pay the employee the current contractual rates as specified in the employee contracts of employment. The employer will also need to pay the Employers NI and Pension contributions.

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