From today we see the launch of the new Coronavirus Job Retention Scheme 2.0, which allows employees to “flexibly furloughed.”.

Broadly speaking, as long as the employee has been on furlough for at least three consecutive weeks between 1 March and 30 June 2020. There is no requirement for the employee to be on furlough on 30 June itself to be eligible (ie they could have been furloughed previously but subsequently brought back to work).

Then from the 1st July 2020 employees will be allowed to work part-time while being furloughed for hours they don’t work and employers will have to pay normal pay for the hours they “use”.

The calculations are very complex – but we have now released a link to the guide which covers how this will all work.


The simplest example

Assume you bring back a member of staff who has previously been furloughed at 80% of their usual wages £2,250 per month therefore: They had been receiving £1,800 per month enteriley for full furlough. But for July 2020. Out of the total possible working hours in the month of 164 – the staff member works and get’s full pay for 80 hours and a gross furlough grant for the remaining 84 hours. The employee would then receive a furlough grant of £921.95 from their employer and this would then be the calculation used for the gross pay grant.

Seem’s simple, but check the detail or give us a call if you are managing furlough for multiple staff members on variable hour contracts or if you are a Nurseries or receive public funding for early years education -as the rules get far more complex from here.

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