The Chancellor last night announced a big update to the Corona Virus Job Retention Scheme (CVJRS).
From 1st July, you'll have the flexibility to bring previously furloughed employees back to work part-time. The government will continue to pay 80% of wages for any of their normal hours they do not work up until the end of August. This flexibility comes a month earlier than previously announced to help people get back to work.
You can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing.
If you can't bring them back to work in July and August then you can continue to claim the full furlough grant, as currently
From August, the government grant provided through the job retention scheme will be slowly tapered.
From 1st August the government will continue to pay 80% of salaries, but you will need to start paying the employers NIC and pension contributions on those salaries
From 1st September, the government support will drop to 70% and a salary cap of £2,187.50
From 1st October, the government support will drop to 60% and a salary cap of £1,875
If you have furloughed employees in September and October, you will need to make up the shortfall back to 80%
The support will end on 31st October
There's some important dates that you need to be aware of
Firstly, the CVJRS will close to new entrants on 30th June. From that date, you will only be able to furlough employees that you have furloughed for a full 3 week period prior to 30th June. What that means is that any employees that you intend to claim for from July onwards, MUST be furloughed by 10th June, at the latest (which is 3 weeks before the 30th June)
Secondly, this is a headline announcement (albeit a long headline!). We need the detailed guidance to be issued before we can start making plans for our teams and phased returns to work. The detailed guidance will be issued on 12th June. As always, we'll keep you updated with things as they develop