There has been a slight update on the Flexible Furlough Scheme (FFS) payment rules for you to be aware of. Under the FFS arrangement, there is now confirmation that the employer WILL top up wages to the 80% for those on furlough rather than ‘should’.
From 1 July, employers have the flexibility to bring previously furloughed employees back to work part-time. They’ll pay their wages for the time they’re in work and can apply for a grant to cover any of their usual hours that they are still furloughed for. Employers will need to manage this arrangement carefully and in accordance with grant application rule to ensure they get grants they require for non-worked hours.
From 1 August, employers will have to pay their employees’ National Insurance and pension contributions.
From 1 September, the government will pay 70% and employers will pay 10% of employees’ wages for the time employees are being furloughed. Employers will also pay employees’ National Insurance and pension contributions.
From 1 October, the government will pay 60% and employers will pay 20% of employees’ wages for the time they are being furloughed. Employers will also pay their employees’ National Insurance and pension contributions. Employers will continue to pay employees wages at the contracted rate for the hours they work for you.
The scheme ends on 31 October 2020.
This is a time to ensure that the finance, HR and management teams/people are all working closely to correctly obtain the FFS grants to keep the business going!