Flexible Furlough COVID-19 Coronavirus

Flexible Furlough

As of the 1st July, 2020 the furlough scheme is to change to allow flexible furloughing. This will mean that employers can bring staff back on a flexible, part time basis.

So far the furlough scheme has helped protect more than 9.3 million jobs during the coronavirus pandemic, with companies claiming over £25.5 billion for staff wages.

This change is part of the government’s plan to re-open the UK and to kick-start the economy.

Employers will be able to bring back staff on a part time basis, whilst the government contribute to 80% of salaries for the unworked hours.

Chancellor of the Exchequer Rishi Sunak said:

“Our number one priority has always been to protect jobs and businesses through this outbreak. The furlough scheme, which will have been open for eight months by October, has been a lifeline for millions of people and as our economy reopens we want that support to continue.

Giving firms the flexibility to bring back furloughed workers on a part-time basis will help them work gradually and help them plan for the months ahead”

The scheme has further changes yet to come before finally closing in October. From August the government’s contribution will be slowly tapered allowing companies to gradually increase their wages contributions whilst ensuring all employees pay does not fall below the 80%.

More information on the changes can be found at GOV.UK or contact AJR & Co Ltd

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