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Employment Law | Update on the Job Retention Scheme

The Job Retention Scheme is due to change in nature from 1 July. Here are the headlines you need to be aware of:

  • After 1 July you will only be able to furlough people who have been furloughed for at least three consecutive weeks prior to 30 June
  • The last date for furloughing someone for the first time is Wednesday 10 June (and that person will need to be furloughed for at least three consecutive weeks from then to be eligible for the scheme)
  • You have up to 31 July to claim any money owed through the scheme for any periods of furlough up to 30 June - this applies to both employees furloughed for the first time and those you have previously furloughed and claimed for
  • The rules of the scheme are changing from 1 July. The Government intends to publish guidance on the changes on 12 June, but we know that the intention is:
    • from 1 July, you will be able to bring back employees to work part-time. You'll pay their wages for the time they're in work and can apply for a "scheme grant" to cover any of their normal hours they are still furloughed for
    • from 1 July, the maximum number of employees you can claim for in any period cannot be higher than the maximum number you have claimed for in a previous period. For example, if the most employees you have claimed for in a period prior to 1 July is 30 employees that remains the most you can claim for. So, if you have been rotating staff on furlough you won't be able to put all of your staff on furlough at the same time
    • from 1 August, you will need to contribute towards the wage costs of your furloughed employees until the scheme ends on 31 October:
          • From 1 August you will need to pay employer national insurance and pension contributions
          • From 1 September the Government contribution to wages will drop from 80% to 70% (capped at ¬£2,187.50 per month) and you will need to pay the additional 10% of wages of furloughed staff (as well as the employer national insurance and pension contributions)
          • From 1 October the Government contribution will drop to 60% (capped at ¬£1,875 per month) and you will need to pay 20% of the wages of furloughed staff (as well as employer national insurance and pension contributions)

Please don't hesitate to contact us on 01423 851138 if you have any Job Retention Scheme issues you need to talk through or email Liz Henry or James Austin


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