
Flexible Furlough Scheme – Employer Guidance and FAQs
Gemma Willis 28th July 2020
From 1st July 2020, employers were given the flexibility to bring back furloughed employees for part-time work, for any amount of time and on any shift pattern, and still claim furlough grants for any of the employee’s normal hours which are not worked.
The final date to which an employer could furlough an employee to benefit from the CJRS was 10th June 2020, as the scheme closed to new entrants from 30th June 2020 and an employee must have had a minimum 3-week furlough period before that date if they wish to avail themselves of the Flexible Furlough Scheme.
The only exception to this is for employees on statutory parental leave (such as maternity and paternity leave) before 10th June 2020 or military reservists returning after this date. These employees will still be eligible for furlough leave even though they won’t have met the 10th June 2020 ‘cut off’ date, provided that (a) the employee was on the payroll at 19th March 2020, and (b) the employer has submitted a claim for at least one other employee who did meet the 10th June 2020 deadline.
The Timeline
1st July 2020:
Government contribution: 80% wages (£2,500 cap) for hours not worked
Employer cost: pay employees for the hours worked alongside usual NIC’s and Pension Contribution for time worked.
1st August 2020:
Government contribution: 80% wages (£2,500 cap) for hours not worked
Employer cost: pay employees for the hours worked and pay employer NIC’S and pension contributions for time furloughed.
1st September 2020:
Government contribution: 70% wages (£2,187.50 cap) for hours not worked
Employer cost: pay employees for hours worked, pay employer NIC’S and pension contributions for time furloughed, and pay 10% top up for time furloughed. (£2,500 cap)
1st October 2020:
Government contribution: 60% wages (£1,875 cap) for hours not worked
Employer cost: pay employees for hours worked, pay employer NIC’S and pension contributions for time furloughed, and pay 20% top up for time furloughed. (£2,500 cap)
Frequently Asked Questions
Do I need to write to the employee to confirm the part-time working arrangement?
Yes, once the hours and/or shift pattern has been agreed with the employee, you should confirm the new arrangement to the employee in writing and the employee should confirm their acceptance of the part-time working under the flexible furlough scheme by signing and returning a copy of the new agreement for inclusion in their personnel file. The new arrangement has to be for a minimum of 7 days, and it can last for any period of time (there is no 3-week minimum period). It is also important to note that you must keep a copy of the written agreement for 5 years.
What period of furlough leave should I claim for through the CJRS?
CJRS claims must be made by employers for a minimum period of one week (unless at the start or end of the month and a claim has already been made for the period immediately before this). Claims must only relate to a period within a single calendar month, so no claims for July can be made before 1st July 2020. In other words, claims need to relate to a calendar month and can no longer straddle months.
You must include all furloughed workers in a single claim, even if they were furloughed at different times within the claim period.
What data should I submit to the CJRS in relation to a claim?
Employers are required to submit data relating to the usual hours an employee would be expected to work in a claim period and the number of hours actually worked.
How long should I keep records of amounts claimed?
Records relating to claims through the CJRS must be kept for 6 years.
When is the deadline to claim?
31st July 2020 is the final date to make any claims in respect of the period up to 30th June 2020.
The CJRS will end on the 31st October 2020. 30th November 2020 is the final date for submitting claims under the Scheme.
How do I claim for hourly paid employees?
You will need to refer to the higher of (a) average number of hours in the tax year 2019/2020, or (b) the corresponding calendar period in the tax year 2019/2020, including working hours and any non-discretionary overtime.
Do employees on furlough leave continue to accrue annual leave?
Yes, employees continue to accrue their contractual annual leave whilst they are on furlough.
Can an employee’s holiday entitlement be carried over into the next holiday year if not used in the current holiday year?
Yes, with the employer’s agreement, employees can carry over up to 4 weeks’ of statutory paid holiday into their next two holiday leave years, if they have not taken their statutory holiday entitlement for the year due to the following reasons:
- An increased demand for their services due to Covid-19 which has resulted in the employee not being able to take paid holiday
- Extent to which the workforce has been disrupted by Covid-19
- Health of employees, for example, employees being too sick to take holiday during the current year
- Length of time remaining in the leave year
- The extent to which the employee taking leave would impact on the wider society’s response to, and recovery from, Covid-19
- Ability of the remainder of the workforce to cover the employee’s workload
Can annual leave be taken during a period of furlough leave?
- Yes, annual leave can be taken during a period of furlough leave.
- Employees will be entitled to receive their usual holiday pay, and employers are obliged to pay the additional amounts due to the employee over the 80% / £2,500 cap.
What happens if a furloughed employee becomes sick?
- Should an employee become sick during a period of furlough leave, the employer can keep the employee on furlough and will not be required to move them on to SSP.
- The employees’ wages can be claimed through the CJRS, even if the individual on furlough leave becomes sick.
- However, if a furloughed employee who becomes sick is moved on to SSP, the employer can no longer claim for their wages as furlough pay through the CJRS, and must instead pay the employee SSP.
- If an employee is entitled to contractual sick pay through a Company sick pay scheme which equates to 100% of their normal earnings, please note they may still be entitled to pay at that level if they become sick during furlough. Please contact Kane HR if you would like further advice on this.
Do I need to write to employees about placing them on Flexible Furlough?
Yes, you will need to agree the change with your employee and confirm the Flexible Furlough arrangement in writing.
If you would like Kane HR to support you with this documentation, please contact us.