Since this article was published, the government has announced it’s COVID-19 furlough scheme has been extended until March 2021. Find out more information.
The government announced changes to the COVID-19 Job Retention Scheme at the end of May. RCN Head of legal (Employment) Joanne Galbraith-Marten explains the changes reps should be aware of
Is it still possible to be furloughed?
The COVID-19 Job Retention Scheme closed to new entrants on 30 June. Employers are now only able to furlough employees who have previously been furloughed for a minimum of three weeks, meaning the last date a new employee could be furloughed for the first time was 10 June.
The exceptions to this include a parent returning to work after statutory maternity or paternity leave, adoption leave, shared parental leave or parental bereavement leave. Under these circumstances, as long as their employer has already been using the scheme, employees remain eligible for furlough even if they’re being furloughed for the first time.
Can members work for their employer after 1 July and still be furloughed?
New flexible furlough arrangements were implemented on 1 July 2020 and furloughed employees could return to work on a part-time basis from that date. However, these arrangements must be agreed between the employee and employer in writing. Employers will pay for the hours employees work and the government grant will continue to cover the hours the employee doesn’t work, subject to the grant cap.
How will pay be calculated in August, September and October if an employee remains furloughed?
During this period, the government grant will be tapered. From 1 August 2020 the grant will continue to provide up to 80% of a furloughed employee’s gross monthly wages capped at £2,500.
However, employers will have to pay National Insurance Contributions (NICs) and minimum pension contributions. This will change from 1 September 2020 when the grant will only provide 70% of an employee’s gross monthly wages capped at £2,187.50.
Employers will be required to pay the remaining 10% (£312.50), and NICs and minimum pension contributions from that date. On 1 October 2020 the grant will provide 60% of a furloughed employee’s gross monthly wages capped at £1,875.00 and the employer will be required to pay the additional 20% (£625.00), NICs and minimum pension contributions.
When does the scheme close?
It’s anticipated that the scheme will close on the 31 October 2020.
Can members be put on notice of redundancy while furloughed?
While the COVID-19 Job Retention Scheme is an alternative to redundancy, staff can still be made redundant while furloughed and will be entitled to a redundancy payment if they have more than two years’ continuous service.
If a member is currently on statutory sick pay can they be furloughed instead?
Paragraph 6.3 in the second Treasury Direction which applies to claims made on or after 22 May 2020 (or claims made before that date that would have complied with it), now suggests that an employer can elect whether or not to furlough an employee entitled to statutory sick pay (SSP), and can furlough those employees not in receipt of SSP even if they are entitled to it.
Joanne Galbraith-Marten
RCN Head of Legal (Employment)
More information
For further advice visit our COVID-19 advice guide.
