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'Furlough Scheme' changes - June 2020

The Coronavirus Job Retention Scheme (CRJS), which most of us refer to as the 'Furlough Scheme' was introduced back in March to help businesses maintain jobs rather than looking at redundancies or laying employees off.

On the whole it has been a success - applications are reasonably straightforward and payments have been fast.  All in we give the Scheme a thumbs up.

From 1 July the Scheme is changing. And pay attention as you may need to take action now.

Essentially:

  • The Scheme will close to any employee that hasn’t been furloughed (minimum of 3 weeks) by 30 June. You will only be able to claim for employees after 30 June if they have been furloughed for a full three-week period (at any time) prior to that date;
  • If you need to furlough an employee who hasn’t been furloughed before, you must do this before 10 J‌un‌e – this is the last day that someone who has never been furloughed before can start a period of furlough and still qualify for the Scheme;
  • You must submit all claims for grants for employees that have been furloughed prior to 30 June by 31 July.

What changes on 1 July 2020

  • From 1 July, businesses will have the flexibility to bring back to work furloughed employees on a part time basis. Businesses will pay the salary/wages for the work performed and can then apply for a grant to cover any of the normal hours that employees are still furloughed;
  • From 1 July, the maximum number of employees that you can claim for cannot be higher than the maximum number you have claimed for previously.  If the highest single claim for any periods prior to 30 J‌un‌e was for, say 12 people, you cannot claim for more than that number of people moving forward;
  • From 1 Au‌gu‌st, business will have to contribute towards the wage costs of  all furloughed employees.

Need help and advice?

To chat through your options feel free to drop me a line at phil@nbsadvisory.co.uk, or complete the contact form or call +44 7596 537289