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On 12th June 2020, HMRC published further updates to the official guidance on the CJRS. It now includes details of how the scheme will wind down between July and October 2020, as the Chancellor announced on 29th May.
So let’s break it down for you:
From 1st July, employers will only be able to furlough employees who have already been furloughed prior to 10th June.
Employers can implement ‘flexible furlough’ from 1 July, including part-time arrangements, and the minimum furlough period (currently 3 consecutive weeks) will no longer apply – flexible furlough agreements can last for any period.
The employer will be required to ‘keep a new written agreement’ when implementing flexible furlough.
Employer will have to pay employees in full for hours worked (with CJRS grants remaining available for normal hours not worked).
The updated guidance link below includes a worked example of how to calculate pay for a flexibly furloughed employee.
Whilst HMRC provided a cut off for new furlough employees as 10th June 2020, this will not apply to those returning from family-related leave. Employees returning from maternity, adoption, paternity, shared parental or parental bereavement leave will still be eligible for the furlough scheme even if they have not previously been furloughed by 10 June, provided that the employer has used the furlough scheme for other eligible employees by that date.
Read full updated guidance: https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme
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