Furlough Scheme rules update June 2021
The Furlough scheme first introduced in March 2020 will change again from 1 July 2021. The level of funding will reduce with the employer asked to contribute part of the cost of your furloughed employees’ wages.
To continue to be eligible for the funding you must pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.The table below shows the level of contribution available in the coming months, the required employer contribution, and the amount that the employee receives per month where the employee is furloughed 100% of the time.
You can continue to choose to top up your employees’ wages above the 80% total and £2,500 cap for the hours not worked at your own expense.Should you be wishing to add anyone to the furlough scheme It is critical to consult with the relevant staff and ensure you have objective grounds for their selection over others.Please contact us regarding any placement and or any partial return from Furlough.
What Happens After September?
As it stands the Furlough scheme will no longer be provided by the government and employers should be seeking to return all their team to their prior contractual hours and specific roles. It is possible, of course, that a further extension may be announced in due course and of course the earlier promise of a job keepers bounty [formerly a job retention bonus which was postponed late in 2020] may be reintroduced.Should it not be possible for you as an employer to achieve a full return for all staff, we would recommend an early discussion and consultation regarding the potential for redundancies and/or amendments to contracts.Care should be taken when consulting and/or selecting for redundancy as the decision to Furlough particular staff, is not likely to present a strong defence for ‘fair’ selection for redundancy.