Flexible Furlough Scheme – new rules from 1 July 2020.

Flexible Furlough Scheme – FAQs

Published 13th June 2020

After much anticipation, the guidance was finally published last Friday to make clear the rules surrounding the Flexible Furlough Scheme which is due to launch on the 1st of July 2020. The deadline for putting employees onto the current Furlough Scheme has now passed in order to meet the 3-week minimum requirement. What do these new rules mean for employers? We have put together some frequently asked questions our HR experts received in the lead-up to the scheme.

Can I put an employee onto the scheme who has been on maternity, shared parental, adoption, paternity or parental bereavement leave?

It appears that this is permitted even if you are furloughing them for the first time. You can do this on the proviso that you have previously submitted a claim for any other employee in your organisation in relation to furlough for at least 3 consecutive weeks between 1st March 2020 and 30th June 2020. This means that if you have not used the scheme before for any other employee, you won’t be able to furlough your employee who is returning from one of the leave types mentioned above. They also need to have been on your PAYE payroll on or before the 19th of March 2020 with the relevant RTI submission being made.

Do I have to put an employee on for a minimum period?

No, the only requirement for this is any employees who are furloughed between the period of 1st March 2020 to 30th June 2020. From the 1st of July 2020, provided that an employee has been on a previous claim you have made as the employer for at least 3 consecutive weeks, you are able to flexibly furlough them as you need to, and in line with all employment laws.

If I’ve made someone redundant, can I bring them back and flexibly furlough them for a longer period?

Yes, provided they were made redundant after the 19th of March 2020, met the previous criteria, and have been on a previous furlough claim you have made for them as their employer. Depending on the period of time between making them redundant and bringing them back, there may be tax implications in relation to any statutory redundancy payment made, therefore employers should take advice as necessary on their situation.

Is there a minimum requirement for how long someone can be brought back for?

No – not from the 1st of July 2020, it is a flexible arrangement subject to them qualifying for it. There is a minimum claim period of 7 calendar days, though.

Will they be paid at 80% when they work for me or will this be 100%?

Employees can either remain fully furloughed at 80% (no 3-week minimum period) from the 1st of July 2020 which would be at 80% or greater depending on your agreement with them, or they can return to work flexibly, receiving the agreed furlough amount for the hours they aren’t working and their normal pay for the hours they are. It is worth noting that National Living Wage and National Minimum Wage increased in April 2020 so any hours being worked must be paid at the relevant statutory rates.

How do I claim for the money?

Using the same portal as before, presumably there will be some sections which will be re-worded, but you must keep records of how many hours your employees work and how many they are furloughed for, for five years.

Do I need a new agreement with my employees?

Yes, the newly issued guidance on the 12th of June 2020 states that you’ll need to agree this with the employee and keep a new written agreement that confirms the new furlough arrangement for five years, ensuring it complies with all employment laws. We are happy to provide this agreement complimentary to Nicholsons clients – please email hrmail@nicholsonsca.co.uk to request a copy.

It is worth bearing in mind that legislation will be added to the Finances Bill very shortly which will allow tax officials to recoup erroneously claimed public funds, which comes with a risk of criminal prosecution. This is understandably the last thing employers will need given the current outlook, so ensure you take professional advice on your circumstances if you are unclear.