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Covid-19 – Flexible Furlough – the details….

Rishi Sunak provided further clarity on the furlough scheme and the impact on businesses on Friday 29 May 2020. Here are the details on a month by month basis.

June 2020: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything. 10 June will be the last day that employers can place employees on furlough.

July 2020: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything if employees remain on furlough.

However, businesses will be given the flexibility to bring furloughed employees back part time. Businesses can decide the hours and shift patterns their employees will work and only pay them for the time at work.

August 2020: The government will pay 80% of wages up to a cap of £2,500. Employers will pay NICs and pension contributions.

September 2020: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

October 2020: The government will pay 60% of wages up to a cap of £1,875. Employers will pay NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

Further details will be published in the Employers Guidance and the Treasury Direction will soon be updated but in the meantime if you have any questions please contact Sejal Raja on sejal.raja@rlb-law.com


Disclaimer

This briefing is for guidance purposes only. RadcliffesLeBrasseur LLP accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.

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