July is near – are your furlough agreements ready for the change?

26th June 2020

July is near – are your furlough agreements ready for the change?

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We are helping clients to decide if they need a new furlough agreement from 1st July. To answer this question, it is much easier to say where a new agreement is not required: if an employee remains fully furloughed and your existing agreement covering furlough extends beyond 30 June 2020, a new agreement is not required.

In nearly all other cases, a revised agreement will be necessary.

On 12 June this year, several significant changes were announced by the Chancellor to the existing Coronavirus Job Retention Scheme (CJRS), leading to the widespread adoption of the term “flexible furlough scheme” or FFS.  This unfortunate acronym may refer to employer’s likely reaction to the new provisions or may just be a witticism courtesy of a nameless civil servant!  There are changes that affect the period for which employers claim and the well-publicised reduction in Government support from August 2020 until the end of the scheme in October this year. Significantly, the revised scheme allows for employers to require employees to work part-time if necessary and to continue to claim under the scheme for their unworked days.

As the economy makes tentative steps towards re-opening, spurred on by further announcements from the Prime Minister to parliament on 23 June 2020 regarding social distancing, part-time working, even by full-time employees, is expected to increase dramatically. Should you require further guidance and advice with drafting new agreements, please get in touch, we are always happy to discuss your changing needs.

For more specific information or to discuss your requirements please call either Amanda Galashan or Julie Calleux at Employease on 03339398741, or email us at info@employease.co.uk. This note does not constitute legal advice on any particular situation you may have.

Copyright: Employease 2020

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