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Furlough and flexible furlough - limitations and corrections

View profile for Julie Temple
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Furlough and flexible furlough - limitations and corrections

From 1 July onwards, the maximum number of employees that can be claimed for in any period cannot be higher than the maximum number that have been claimed for in a previous period. For example, if the highest single claim for periods up to and including 30 June was for 100 people, employers may only claim for this number in later periods and not more.

We think this is a real limitation to the furlough scheme from 1 July. We are sure many employers will have been contemplating job share of roles and this potentially rules this out. It also adds yet another level of complexity as employers will need to be sure they don’t exceed the maximum! 

This restriction may mean employers place more on furlough on or before 10 June than originally planned to give themselves headroom.

Claims for the period to 30 June 2020 can be made up to 31 July.

Don’t forget further guidance is due by 12 June. 

Specific guidance has been introduced for research organisations to help make decisions pre-10 June 2020 and can be viewed on the government website

Changes to past furlough claims

We understand HMRC has updated the online application system to allow employers to account for any over-claimed in a previous claim. Any over-claim amount will be deducted from the next payment. Records must be kept for six years.

An online application process is being established for over-claims where future claims under the scheme are not being made. 

We are not sure about any system for any under-claim!

If you have any questions about the furlough scheme, flexible furlough or other HR and employment law issues, please contact me on 01206 217318 or julie.temple@birkettlong.co.uk

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