Employees returning from a period of family-related statutory leave such as maternity or paternity leave, can be furloughed as long as they were on leave before 10th June and returned after 10th June. The employee must have been included on the Company's PAYE payroll on or before 19th March and the employer must have furloughed other employees between 1st March and 30th June 2020.

Furlough earnings must be calculated by using either their fixed pay or variable pay calculations as per the Job Retention Scheme based on their pay prior to their statutory leave. The Employer cannot claim under the Job Retention Scheme for any employee who is receiving Maternity Allowance whilst on Maternity leave.

To calculate the furloughed earnings for employees returning from sick leave and put straight onto furlough, the Employer must use either the employee's fixed or variable pay calculations as per the Job Retention Scheme based on their pay prior to their sick leave.

For employees returning from unpaid leave or a sabbatical, the Employer must use either their fixed pay or variable pay calculations as per the Job Retention Scheme based on their pay prior to their statutory leave.

The Government has recognised that it needs to aid businesses with returning employees back to work. Therefore, with effect from 1st July, the original Job Retention Scheme is being amended to allow employees to return to work on a part time basis. Any shortfall in contracted hours are to be paid by the Government up to the limits previously in place under the Job Retention scheme. This is called Flexible Furlough.

The employer should explain to the employee the proposal for the introduction of Flexible Furlough and the reasoning. Mutual agreement should be reached between the Employer and employee. The Employer should set a date when the situation will be reviewed. The Employer must write to the employee confirming the discussion and agreement reached. The employee should sign to say that they have read and understood the change of employment terms and conditions.

Once agreement is reached, the Employer will need to submit a return to the HMRC for the hours worked by the employee, contracted hours as per the employee's contract of employment and the hours being claimed for under Flexible Furlough.The Employer must keep the records for at least five years.

No. An employee cannot undertake any work for the Employer during any hours where a furlough claim under the Job Retention Scheme is made. The employee must not be involved in any activity that makes money for the Company or provides services for the Company or any organisation linked to it.

The Chancellor has stated that it is time that the cost of the Job Retention Scheme is shared by Employers.

For employees that are fully furloughed until 31st July,the Employer does not have to contribute any additional monies to pay furloughed employees.

From 1st August, Companies will need to pay the Employers NI and Pension contributions and will no longer be able to claim these costs back under the Job Retention Scheme.

From 1st September, companies will need to pay 10% of furloughed salaries in addition to the Employers NI and Pension contributions.

From 1st October, companies will then need to pay 20% of furloughed salaries plus Employers NI and pension contributions.

The above sums are payable whether the employees are fully furloughed or working under the Flexible Furlough arrangements. When working under Flexible Furlough, the Employer must also pay the Employee for all hours worked.

You can make claims under the new arrangement from 1st July. Claims for periods ending on or before 30th June can be made on or before 31st July. Moving forward, Employers can only make one claim to the HMRC per month,and this must be for the full calendar period and not include any time for any hours worked in other months.

Under the rules from 1st July, you must claim for at least 7 days at a time. The only exception to this is if you are claiming for the start or end of a month and the employee has been furloughed during the month immediately before or after it.

Whilst an employee could technically be allowed to be paid less than the National Minimum Wage whilst being paid 80% of their salary, the minimum rate must be paid for all hours worked by an employee and also for any training carried out whilst they are on furlough.

Furloughed employees retain their rights to be paid Statutory Sick Pay (SSP), subject to meeting the eligibility criteria. It is up to the Employer whether they elect to take them off furlough and pay SSP or leave them on furlough at their furloughed rate.

Employees that receive SSP cannot be included on any claim under the Job Retention Scheme and the employer is responsible for paying SSP. Employees that are self-isolating and/or suffering from symptoms of COVID-19 may be eligible for SSP from day 1.

Employers maybe able to claim back SSP under the COVID-19 SSP rebate scheme up to a maximum of 2 weeks.

These employees will be entitled to SSP, subject to the eligibility criteria. The Job Retention Scheme cannot be used for covering short term sickness.

Do You Have Any Questions We Have Not Answered?

The answers to these questions have been put together using the HM Government's Guidance Notes, published on 12th June 2020.

If you have any questions that we have not covered here or need to ask any specific questions, please do not hesitate to contact us at sales@hrsmartuk.com or call us on 01903 754107.

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HR Smart Ltd  

197 Brighton Rd Lancing West Sussex BN15 8JB United Kingdom

Telephone: 01903 754 107  
Email: sales@hrsmartuk.com