From 1 July 2020, furloughed employees were able to return to work on a part-time basis.
Employers must pay in full for days worked and can claim under the CJRS for days not worked, subject to the relevant caps. The key ways in which the scheme changed on 1 July are as follows:
- Only employees who started furlough on or before 10 June 2020 are eligible for the new scheme, unless they were on a long period of statutory family leave, or a military reservist on a period of mobilisation, on 10 June.
- There is no limit or restrictions on the working arrangements that can be agreed with furloughed employees. Employees do not need to be furloughed for a minimum of three weeks so rotations on and off furlough can be made on a more frequent basis.
- The new working arrangement must be agreed between employer and employee before the claim period starts and should be confirmed in writing by the employer.
- Claim periods need to be a minimum of a week and can no longer overlap months. See paragraphs 14.5-14.10 of the third Treasury Direction here
- Employers need to report both hours worked and the usual hours an employee would be expected to work in a claim period. This means that an employer making a claim in advance of the payroll date needs to be certain of the hours that anyone who is flexibly furloughed will work between the date on which the claim is made and the end of the claim period.
- The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim. There are specific rules for calculating the maximum number of employees who can be furloughed where there are employees newly furloughed following statutory family leave or a period of mobilisation as a military reservist, or who are inherited by an employer through a TUPE transfer after 30 June 2020.
- The calculations required to claim are more complicated. It is necessary to ascertain each employee’s normal working hours for the claim period, the number of hours they actually worked, and the sum that the employer can claim from the CJRS in respect of the non-working period.
For more information on the above or to speak to a member of the employment team, contact email@example.com