Coronavirus News: Flexible Furlough Scheme starts today !
From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back part time. This is a month earlier than previously announced to help support people back to work. Individual firms will decide the hours and shift patterns their employees will work on their return, so that they can decide on the best approach for them - and will be responsible for paying their wages while in work.
Leicester businesses in extended Lockdown
For Leicester businesses however, who are currently in lockdown once again from this week, re-engaging furloughed employees back to work may have to be delayed even further as there is no confirmed date when the lockdown in Leicester will be lifted.
Head of employment at Lawson-West, Vaishali Thakerar comments:
"People living and working in Leicester are facing a fraught time as business owners had geared-up ready to start to get their businesses back on track and bring some or all of their furloughed workers back to work. For some, this extended lockdown delay could be devastating as much needed and anticipated income is again, frustratingly, just out of reach. This will impact on their ability to start trading again fully and pay wages."
Read our full article about Redundancy and the Flexible Furlough Scheme here.
From August 2020, the level of government grant provided through the job retention scheme will be slowly tapered to reflect that people will be returning to work. That means that for June and July the government will continue to pay 80% of people’s salaries. In the following months, businesses will be asked to contribute a modest share, but crucially individuals will continue to receive that 80% of salary covering the time they are unable to work.
The scheme updates mean that the following will apply for the period people are furloughed:
June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
At Lawson-West we have a dedicated team of employment professionals who between us have experience of every type of industry and business. You can trust us to give your business independent and savvy employment advice that’s totally right for your business circumstances.
Don’t rush to make redundancies when you don’t have to.
Don’t be pressured by the Government’s deadlines, take some clear advice and look for the alternatives carefully.
We are a national provider of expert employment law advice and welcome a free discussion with you regarding your business’ circumstances and the advice you may need.
Please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively fill in the free Contact Us form and we will get in touch as soon as possible.View all