WellTax Blog

Furlough Scheme: New changes from July

January 6, 2020

Furloughed workers will be allowed to go back to work as part-time from 1 July. This decision was taken to help people gradually back to their normal work. However, it will depend on businesses on how to interpret the meaning of part-time. In fact, employers will be allowed flexibility while establishing which shift patterns will be more opportune for their staff to restart working. However, it is to bear in mind that businesses will have to pay their staff’s salaries once they have restarted working.

The national chairman of the Federation of Small Businesses affirmed that the extension of the furloughed scheme, along with its flexibility, is crucial to give a positive signal to the UK economy.

He also stated that the more the government will be able to meet the “adaptability” that companies are seeking along with the opportunity of a “flexible furlough launch date” to bring the working condition back to normal, the greater will be the response and the hope of the UK small enterprises.

Anyhow, in practical terms, as workers will be starting working again, the amount of grants put in place by the government will decrease from 1 August.

In fact, furloughed workers will still be eligible to have 80% of their gross salary, but the employers will be required to pay National Insurance and workplace pensions from August. In addition to this, they will be required to pay 10% of September employees’ wages, which will increase to 20% in October.

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