Changes to the Furlough scheme - July 2021
- AuthorSarah Shah
Important changes to Coronavirus Job Retention Scheme (CJRS or furlough) come into force on 1 July 2021, with employers being required to contribute a percentage towards their employees’ wages for hours not worked.
- 1 July 2021 -The government will reimburse employers 70% of a furloughed employee’s salary (up to £2,187.50 per month).The employer will need to top up 10% (up to £312.50) to make the 80% the government has been paying. The employer will continue to pay national insurance and pension contributions.
- 1 August 2021 -The government will reimburse employers 60% (up to £1,875 per month) with the employer having to contribute 20% (up to £625.00) and pay national insurance and pension contributions.
Government guidance on the changes from July onwards can be found by clicking the link below:
Employers with employees still on furlough?
With the imminence of these changes and the ultimate (expected) end of the CJRS on 30 September 2021, employers with employees still on furlough should, if they have not already, ensure there are sufficient funds to meet the required employer contributions and plan for the return of staff.
You might want to consider, for example, managing holiday and requiring employees to take holiday before they return. For more information read our blog on the importance of making sure employees are taking holiday. - https://www.birkettlong.co.uk/site/blog/coronavirus-blogs/taking-your-holiday-entitlement.
How to approach reluctant employees
Our Employment and BLHR team are available to discuss, support and advise you on any legal/HR concerns that you might have.
As well as support from the team we have also put together a redundancy kit (https://www.birkettlong.co.uk/site/mybl/employee-redundancy-kit/) which provides guidance and templates for redundancies of less than and more than 20 employees.
If you require any more information on this topic please contact me via Sarah.Shah@birkettlong.co.uk or on 01206 217301.