Mark Fellows Partner
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8th June 2020 | Mark Fellows | Employment Law, Coronavirus, Furlough
What is clear from the Government’s latest furlough announcement is that from August 2020 they will be asking employers to start to share the burden of paying furloughed employees on a staggered basis.
What this means in practice is:
What is “flexible furloughing”
From 1 July 2020, businesses will be given the flexibility to bring furloughed employees back into the workplace on a part time basis.
Up until now, employees had to be furloughed for a minimum of 3 consecutive weeks. However, from 1 July, employers will only need to report and claim for a minimum period of one week. This is different to the previous position under the scheme, as whilst the minimum claim period is now 1 week, the employee does not appear to have to be furloughed for that entire week.
The aim is to help bring people back into the workplace on a flexible basis, with businesses able to decide the hours and shift patterns their employees will work on their return. Broadly, it appears that from 1 July, employers will be able to claim a pro rata’d amount of salary, based on the proportion of the employee’s normal working hours which are spent on furlough during that period.
Of course, employers will also be responsible for paying their employees’ wages while they are in work and not on furlough leave and so this strategy ultimately depends on whether the business has enough work for its employees to do, in order to justify bringing them back into the workplace.
Important dates and points to note:
To find out more, please contact Mark Fellows.