The Chancellor has now announced further reforms to the Scheme from July. We are still awaiting detailed guidance as to the operation of the Scheme but the main changes are set out below.
From 1 July, staff will be able to undertake some work part-time and be furloughed part-time. It is anticipated that employers will need to pay staff in full for the part-time hours and can then recoup pay up to the relevant limits (ie 80% in July) for the furloughed element.
Although employees who are furloughed should still receive no less than 80% of their normal pay (capped at £2,500), employers will have to start meeting some of the costs and so will not be able to recover the full amount. This means that:
The Scheme will be closed to new entrants from 10 June and so consideration will need to be given as to whether to furlough staff ahead of this deadline.
It is anticipated that the Scheme will cease entirely on 31 October.