Under the original furlough scheme, it was not permissible for employees to carry out any work while on furlough (with certain exceptions for training).
This made it unattractive to bring back employees on a part-time basis. The flexible furlough scheme now allows part-time working from 1 July 2020.
From 1 July, employers can bring back to work previously furloughed employees on a part-time basis. In general terms, the principle will be that employers will pay for the hours worked and can claim under the Coronavirus Job Retention Scheme (CJRS) for the hours not worked. Please see our separate blog for details of the original and amended CJRS, and the amounts claimable from HMRC.
Note that the original furlough scheme will close to new entrants on 30 June. This means that anyone who has not already been furloughed would need to be furloughed on or before 10 June in order for a claim under the CJRS to be made, or to benefit from flexible furloughing.
In relation to the hours not worked, the CJRS grant will be based on the usual hours worked in a pay period. The wage cap (£2,500 in July and August) will be pro-rated to the hours not worked.
Employers and employees will be able to agree any working arrangements or shift patterns for flexible furlough purposes. The new arrangement must be confirmed in writing.
Claims may be made on a monthly or shorter basis, subject to a minimum period of one week. Claims cannot overlap a calendar month.
Employers will be liable to pay the normal employer’s NIC and pension contributions in relation to pay for hours worked.
Please speak to your normal MHA Moore and Smalley contact for further information, or contact us here.