UPDATE AND REMINDER Furlough Scheme change from 1 August for the #jobretentionscheme

Redundancy Payments

From 30 July  all furloughed employees are to receive redundancy payments calculated at 100% of their normal pay, rather than the reduced furlough rate. 

Furlough Scheme Changes from 1 August 2020

From 1 August the Furlough Scheme changes - check out how the updated guidance for how the Flexible Furlough Scheme will work.

• Employers will have to pay employers NI contributions and Pension contributions as they can no longer claim them through the Coronavirus Job Retention Scheme from 1 August .

Historic details below and full information is available on the Government website…https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

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Coronavirus Job Retention Scheme - key changes and dates

Reforms to the Coronavirus Job Retention Scheme

1. 10 June 2020 – was the last day that employers could place employees on furlough.
2. 1 July 'flexible furlough' was introduced. This means employees are able to work part-time and be furloughed part-time. Businesses will have to decide how that will work in terms of the time split.
3. 1 August, employers will have to pay employers national insurance contributions and pension contributions, as they can no longer reclaim them through the CJRS.
4. 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,187.50). Employers will be required to top-up to 80%*
5. 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), employers will continue having to top up to 80%*
6. The Furlough scheme will close on 31 October 2020.

*or £2,500 whichever is the lessor or, more depending on what the employer agreed with the employee.

For help or guidance on Employment Law Matters, please  speak to Emma-Louise Hewitt 0808 166 8860 e.hewitt@sydneymitchell.co.uk