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CORONAVIRUS: Updates on the Furlough Scheme and Statutory Sick Pay

The Government has announced how the furlough scheme will change from 1 July:

The scheme will close to new entrants from 30 June. After 1 July, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June. The last date an employee can be furloughed for the first time is 10 June, in order for the 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

From 1 July, Employers will be able to bring back employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. Employees must be paid in full for their hours worked.

This will require employers to submit details of the normal and actual hours worked.

Government support will remain unchanged for June and July.

In August, the Government will continue to pay the salary element but employers will be required to pay the employer’s NI and pension contributions in full.

In September, the Government contribution will drop to 70% of the wages (up to £2,187.50) with employers being required to make up the 10% (up to £312.50) as well as paying the full employer’s NI and pension contributions.

In October, the Government contribution will decrease to 60% (up to £1,875) with employers being required to make up the 20% (up to £625) as well as paying the full employer’s NI and pension contributions.

Employees will continue to receive 80% of their wages (up to £2,500).

Claims made for periods after 1 July cannot overlap months.

Further guidance on calculating claims after 1 July is to be published on 12 June.

Statutory Sick Pay - UPDATE

Claims for the first grant must be made on or before 13 July 2020.

The scheme is being extended with a second and final grant to be claimed in August 2020.

The second grant will be set at 70% of 3 months average trading profits and capped at £6,570.

The same eligibility criteria will apply to the second grant. An individual does not need to have claimed the first grant to receive the second grant: for example, they may only have been adversely affected by COVID-19 in this later phase.

Further guidance is to be published on 12 June.

Monday, 1st June, 2020