Final details of flexible furloughing Scheme now in place

The legal framework has now been published for the new, more flexible version of the Coronavirus Job Retention Scheme which launches on 1 July. This is in the form of a third Treasury Direction, published on 26 June.

The third Treasury Direction largely confirms the changes which were initially announced at the end of May, and set out in more detail in revisions to the Guidance earlier this month.

Key changes to the previous Scheme include:

  • Allowing employees to return from furlough part-time, with any working pattern
  • Abolishing the minimum three week furlough period
  • Closing the Scheme to new employees (subject to some exceptions)
  • Capping the number of employees who can be claimed for
  • Introducing employer contributions, starting in August
  • New rules on calculations and claims

It is possible for furlough periods to straddle the old and the new Scheme.  However claims attributable to wages payable prior to the end of June must be made by the end of July in all cases. 

We have updated our FAQ document to reflect the changes.  There is now a landing page for all the relevant Guidance here and all three Treasury Directions can be found here

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