Flexible furlough scheme launches tomorrow

The new flexible furlough scheme comes into force from tomorrow (1 July), allowing employers to bring employees back to work on a part-time basis.

Under the flexible furlough arrangement, employers can bring furloughed employees back for any amount of time and any work pattern, while still being able to claim for the hours not worked.

Employers must agree with the employee any new flexible furlough working arrangements and confirm that agreement in writing. They will be required to pay employees for the days/hours worked under the flexible furlough scheme, including tax and National Insurance Contributions, but can claim the shortfall between the hours worked and the normal hours up to the current 80% limit.

However, from 1 August, employers will be required to make a contribution to the government grant. The government will cover 80% of wages up to the £2,500 per month cap.

For September the Government will cover 70% of wages up to a cap of £2,187.50 per month, and from October the government will cover 60% of wages up to a cap of £1,875 per month.

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