09.06.2020
This is a reminder that the last date you can place an employee on furlough under the Coronavirus Job Retention Scheme (the Scheme) for the first time is 10 June 2020.
Last month the Government announced that the Scheme will continue until the end of October, with some adjustments which will take effect from 1 August 2020 to allow new flexibility. The Government hopes that these adjustments will help to get employees back to work and boost the economy. Although full details about implementation of the further extension and the new flexibility will not be published until 12 June, the Scheme will close to new entrants on 30 June.
Because the Scheme will close to new entrants on 30 June, the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current minimum three-week furlough period to be completed by 30 June. So, if you have not furloughed an employee at any time on or before 10 June, you will not be able to furlough them in the future.
Information was limited in the Government’s announcement and the accompanying factsheet about the way the Scheme will work in future. We sought clarification from Government and can confirm that the employee does not need to be on furlough at the time that the Scheme closes. So long as an employee has been on furlough for at least the three week minimum period at any time before the end of June, they can be furloughed under the Scheme after 1 July. In short, claims from July onwards will be restricted to employees who are currently on furlough and to previously furloughed employees.
How we can help
We will update you on the new guidance by e-alert when it is published. We will also update our FAQs and associated documents to reflect these changes and any further Government guidance on how they will work in practice.
If, despite the Scheme, you are considering the prospect of redundancies, you may find our webinar, Redundancies in the context of Covid-19, helpful. Click here for more information and to book.
Make UK Members can access our Furlough Letters and Resources Pack which includes helpful checklists and webinar materials on getting your business running again, in the HR & Legal Resources section of our website and can contact their named adviser or the National Advice Line on 0333 202 2221 for legal advice on specific queries.
During the Covid-19 crisis, we are also offering non-members access to the Furlough Letters and Resources Pack or a one-off fee and access to our HR and Employment Law Helpline on a monthly subscription basis. To access the support pack, or sign up for a one month subscription, call us on 0808 168 5874.