Posted by Gemma Ospedale, Partner
New guidance on flexible furlough issued
The Government has today (26 June 2020) issued a Treasury Direction concerning the new flexible furlough scheme which comes into force on 1 July 2020.
The rules will apply from 1 July 2020 until 31 October 2020, when the scheme is wound up.
There is detailed information regarding how pay is calculated and what can be claimed, including formulae for calculating payments in accordance with the hours worked/furloughed and details regarding the type of study and training (and trustee work) which can and cannot be undertaken during furlough.
Points to note are:
• The cut-off date for making claims under the original CJRS is 31 July for furlough periods up to 30 June.
• Any claim for furlough periods from 1 July must be claimed under the new scheme.
• An employer will only be able to participate in the new CJRS from 1 July if it has made a claim under the original scheme by 31 July in respect of an employee who has been furloughed for a minimum of three weeks beginning on or before 10 June.
• The only exception to the 10 June cut-off is for family leave returners and armed forces reservists.
• As before, employer and employee must reach agreement on flexible furlough arrangements which must be confirmed in writing and retained by the employer until at least 30 June 2025.
Our Employment & HR team is on hand to steer businesses through the minefield that lies ahead. Contact Partner Gemma Ospedale:
020 7842 1496 Email us
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