The CJRS, Flexible Furlough And The Importance Of Getting It Right

• Published date: 22 June 2020
• Author: Ms Alacoque Marvin and Michael Crowther
• Subject Matter: Employment and HR, Retirement, Superannuation & Pensions, Employee Benefits & Compensation
• Law Firm: Wrigleys Solicitors

New Government guidance on flexible furlough published and new HMRC enforcement powers announced

As the UK attempts to emerge from lockdown and to get the economy moving once again, the Government has published guidance on upcoming changes to the Coronavirus Job Retention Scheme (CJRS). These changes aim to provide employers with the flexibility to bring employees back to work part-time while retaining some level of support for employment costs.

From 1 July the CJRS will be much more flexible and, perhaps inevitably, much more complex than before. From that date, employers will be able to bring furloughed employees back to work for any amount of time and on any work pattern, whilst still being able to claim a grant for the hours not worked. For example, an employer and employee can agree that the employee will return to work three days a week and remain furloughed for two. Similarly, an employee could work each morning and be furloughed each afternoon.

Agreed flexible furlough arrangements from 1 July can last any amount of time (as opposed to the minimum three consecutive week period required under scheme up to 30 June). However, when claiming funds from the CJRS the minimum claim period will be 7 calendar days (unless employers are claiming for the first few days or the last few days in a month).

For the non-working hours, the employee is furloughed and will continue to be prevented from making money for or providing services to their employer (or any organisation linked to their employer). Employees can however continue to take part in training, volunteer for another employer or organisation or work for another employer during furloughed hours, if that is contractually allowed.

To be eligible, an employee being furloughed from 1 July must have been furloughed for a period of 3 consecutive weeks prior to this date, at any time between 1 March and 30 June. The last day an employee could start furlough leave for the first time was 10 June. However, the Government has announced that the 10 June cut off date will not apply to those who return to work after that date following a period of statutory maternity, paternity, adoption, shared parental or parental bereavement leave.

Agreeing flexible furlough with employees

The guidance makes clear that employers will need to agree new flexible furlough arrangements with employees or their trade unions (where a collective agreement is in place) and ensure that the agreement is confirmed in writing. This written...