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Reminder - Flexible furloughing now available to employers

Published on: 26 June 2020

HM Revenue - furlough scheme

Earlier this week, changes to the Coronavirus Job Retention Scheme came into effect – meaning you can now claim for flexible furloughing. Employers can now claim a more flexible grant for any employee they have previously furloughed. However, they can also continue to submit a claim for staff that remain fully furloughed. 

Employers wishing to make use of the flexible furloughing changes must agree to the hours and shift patterns they would like their employees to work from 1 July. They must pay employees for the time they remain in work but can claim for the hours they do not work. 

The new guidance outlines the changes to the scheme which will take effect over the next few months and sets out how payment levels will adjust. 

For June and July, the UK Government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.

For August, the UK Government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.

For September, the UK Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

For October, the UK Government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

British Marine would encourage its members which have furloughed staff to familiarise themselves with these changes. Our members can also find examples on GOV.UK to help you calculate your claim.

Employers wishing to claim for previous periods ending on or before 30 June must file their claims by 31 July. 

Our members should visit the GOV.UK website to claim and check our Coronavirus Hub for more information.