Coronavirus Job Retention Scheme – Improved flexibility
Late last week we were informed that the government are making changes to the furlough scheme one month earlier than originally planned.
From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim the furlough grant for their normal hours not worked.
We feel this new flexibility of the scheme can significantly benefit our clients as we have had many clients furlough employees and some that have been reluctant to do so as their business cannot run without them employees.
Are you one of those businesses that have struggled to pay your staffs wages but have not yet furloughed any of your employees because of the strict criteria that ‘your employee cannot conduct ANY work if on furlough’? If so, please do get in touch!
The scheme flexibility from 1 July, allows your staff members to work per your agreed shift pattern and the remaining hours not worked would be subsidised via the furlough scheme. This means that you would only pay out the hours you can afford for your staff to work, rather than running your business into the ground.
The government have launched this flexible scheme to support businesses and to protect the UK economy and we therefore advise where possible to use this scheme if your operations have been severely affected by the coronavirus crisis.
There are key dates to be aware of as the scheme closes to new entrants from 30 June. This means the latest date your employee can first become furloughed is 10 June.
Our clients that have previously made a claim through the furlough scheme will remain entitled to the reclaim from HMRC. This information is only crucial to the employers that have not yet furloughed any employees but do expect this crisis to continue to negatively impact the business operations.
We will be creating a separate blog based on the changes to the scheme as from August to October 2020, but for now please do get in touch if you feel the above applies to you and your business.
Here at Kirkwood Wilson, we do not want any clients to suffer financially any more than they already have, and this scheme could just be that extra support you need to get through these challenging months ahead.