Key Conditions for 'Flexible Furlough'
Only those employees who have been furloughed and included in a claim under the original CJRS scheme may be included in a claim for the new flexible furlough.
That means they must have been furloughed on or before 10 June to allow a full 21 days prior to the end of the original scheme.
A further restriction is that the maximum number of employees that can be included in a flexible furlough claim cannot exceed the maximum number included in a claim under the original scheme. Thus if the employer has 8 employees split into teams of 4 and furloughed team A for three weeks and then team B for 3 weeks the maximum number of employees that can be included in a flexible furlough claim will be limited to 4.
Unlike the original CJRS furlough scheme, there is no minimum furlough period as the intention is to allow employers the flexibility to gradually bring employees back to work. The hours/days worked will need to be agreed between employee and employer which is likely to involve amending the employees’ contracts.
Employees will be entitled to their normal contractual pay for the hours that they work and must be paid at least 80% of their normal pay for the hours that they are furloughed, even when HMRC are only reimbursing 70% or 60%.
Employers will need to notify HMRC of the employee’s usual hours and the hours worked in the claim period. The furloughed hours will be the difference. This will be complicated where the employee’s hours vary.
There is currently a lack of clarity in the HMRC guidance on the calculation of “usual hours” and if you are a client of ours we will be able to assist you in making your claim or we can make claims on your behalf.
Claims made by an employer must be for a week or more and no claim period can straddle a calendar month-end. Like the original scheme, claims cannot be made more than 14 days in advance.
The first claims under flexible furlough were available from 1 July and the deadline for claims under the original CJRS for the period to 30 June is 31 July 2020.
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