Furlough Scheme Reduction
How the Furlough Rules are set to change in July and August.
Annalie King Consultant Employment Solicitor at Kerseys explains:-
The government furlough scheme will change on 1 July 2021.
The scheme has enabled employers to retain employees that may have otherwise been made redundant due to the pandemic.
By employers furloughing employees under the Coronavirus Job Retention Scheme, employers have been able to receive a proportion of employees’ wages to help companies through the pandemic.
Employees on full furlough will receive 80% of their wages each month unless their employer decides to top up the payment to 100%.
Where an employee is on flexible furlough, the employee will be paid all of their hours they work, however, the grant will only cover 80% pay for their unworked hours only, subject to a cap which will be less than £2,500 a month.
Changes in July 2021
From July the employer will have to now contribute towards furloughed employees’ wages as the scheme reduces to 70% of the furloughed employees’ wages for their unworked hours at a cap of £2,187.50. Employers will need to contribute 10% up to £312.50.
Changes in August 2021
From 1st August the scheme will reduce again for the final time to 60% with a cap of £1,875 a month.
Employers now need to consider how they can accommodate the changes ahead before the furlough scheme officially ends on 30th September.
Need Employment Help or Advice?
For advice on furlough or any employment-related issues whether you are an employee or an employer, Annalie King is a specialist on hand to assist you.
Contact Annalie at [email protected] or telephone Ipswich 01473 213311 or Colchester 01206 58454. Alternatively, you can click “Call Me Back” where a member of our team will be happy to contact you.View Our HR Services