Coronavirus Update: 24th June 2020

In light of the Government updates on Covid-19, here are some of our FAQ and our advice to help you through the current evolving situation.

What are the main changes I need to look for in the July guidance?

Employers can bring furloughed employees back to work for any amount of time and on any shift pattern, while still being able to claim a CJRS grant for the hours not worked.  Claim period starting on/after 1^st July must start and end within the same calendar month and must last at least 7 days.

For example, in July, an employer is entitled to receive 60% (up to the £2,500 cap) if they place an employee on furlough for 60% of their usual hours.  For the hours the employee works, employers will have to pay this.

Can I furlough anyone that hasn’t been furloughed previously?

No, the deadline to furlough any new employees who haven’t been furloughed previously was 10^th June.  An employer cannot furlough any greater number of employees than have been furloughed previously (except those returning from parental leave- seek further guidance from us to navigate this).

Can I continue to top-up furlough pay?

Yes- the government haven’t changed their stance on this

If I need to furlough my staff again, do I have to ask them to take the minimum 3-week period off still?

Yes- the government don’t appear to have changed their stance on this

Summary of the Latest Updates:

• June: No changes to the grant levels

• July: The government will continue to pay 80% of wages up to the £2,500 cap for the hours staff are on furlough, as well as NI contributions and pension contributions that the employee is on furlough

• August: From 1 August 2020, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough

• September: From 1 September 2020, the government will pay 70% of wages up to a cap of £2,187.50 per month for the hours the employee is furloughed.  Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to the £2,500 cap for the time they are furloughed

• October: From 1^st October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed

If you would like to discuss any points further, please do not hesitate to get in touch.