Navigating the new normal

Deadline to furlough staff for the first time is expiring

All content on this page is correct as of June 9, 2020

The terms of the Coronavirus Job Retention Scheme (“CJRS”) alter with effect from 1 July 2020. 

Only employees who have been furloughed for the minimum of three weeks on or before 30 June 2020 will be eligible for the scheme after 1 July 2020.

It follows that, with the agreement of the staff member (as this is a condition of the CJRS reimbursement), staff must have been furloughed for the first time by 10 June 2020.  Whilst staff could be furloughed in a letter on 10 June 2020, it must be with immediate effect, not with effect from the following day.

We would recommend that if staff are being furloughed for the first time then, with their agreement, they must be furloughed on or before 10 June 2020 (tomorrow) and that it would be wise to be furloughing them today (9 June 2020).

With effect from 1 July 2020, there is greater flexibility under the scheme, in that rather than staff being furloughed, for three weeks, they can be furloughed for any period, and they will be eligible to work part-time, with reimbursement being limited to the periods during which they are furloughed (rather than working).

The government subsidy is tapered with effect from 1 August 2020 with employers being required to pay employers NICs and pension contributions, and with effect from 1 September 2020 and 1 October 2020 the government contribution to salary dropping by 10% in each month. 

The scheme ends on 31 October 2020.

This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.

All content on this page is correct as of June 9, 2020.

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