Announcement – Flexible Furlough Scheme

On Friday 29th June, we received an announcement from the government regarding the Furlough Scheme.

All furloughed employees will continue to receive a minimum of 80% pay (up to a max of £2,500).

The changes are staged for August, September and October as follows:

MonthGovernment ContributionEmployers Contribution
June80% (max £2500 pm)
+ NI + Pens
July80% (max £2500 pm)
+ NI + Pen
August80% (max £2500 pm)NI + Pens
September70% (max £2190 pm)10% + NI + Pens
October60% (max £1875 pm)20% + NI + Pens

A new flexible furlough scheme has also been introduced and will be effective from 1st July.  Employers could opt to return employees on a part-time basis and pay them for the hours worked, and then furlough them for the remainder of their working week and the rate of contribution for this is as above.

The furlough scheme will be closed to new entrants on 30th June so, in order to be eligible and have a minimum of 3 weeks on furlough, employees will need to be furloughed by 10th June at the latest.

To meet these deadlines, you now have just over one week to review and implement your furlough strategy. Part-time furlough will work for many employers, however, there will, unfortunately, be some that will need to consider the redundancy option.

Next Steps

  • Review HR Strategy in line with the latest guidance and Agile HR can talk through your options and advice on the best solutions for you.
  • Furlough any employees by 10th June who you wish to continue on the new flexible furlough scheme as anyone furloughed after this date will not be eligible;
  • Consider any other options including phased returns to work, reduction in working hours, linking staff contracts to performance of business, short time working or redundancies.  Do not leave these conversations until later this year as staff will be less responsive.  Discuss with Agile HR on how to have these discussions

Do get in touch with us for further information and guidance and we would be pleased to help.

Stay in the know