Furlough extended to October and part-time working allowed

Updated: Jan 22

The furlough scheme was extended to the end of October, but staff were able to return to work part-time from 1 July 2020.

The changes to the Coronavirus Job Retention Scheme (CJRS) were announced in the House of Commons by chancellor Rishi Sunak after concerns were raised about the impact removing the support too early would have on jobs. Employers were able to put staff on part-time furlough, claiming the CJRS grant for a portion of their salary.

Critically, employers were only able to claim going forward if they had previously claimed under the pre-1 July scheme. Also worth noting is that as there was a three-week minimum furlough requirement under the then-current rules, it follows that any new period of furlough leave must have been started by 10 June 2020 to be complete when the scheme ended on 30 June and so ensure the employee remained eligible from 1 July.

The changes also introduced a new limit to the number of staff who could be included on a claim.

This was based on the maximum staff ever included in any single pre-1 July claim. The Chancellor also confirmed that from 1 August the CJRS grant no longer covered the cost of employers’ National Insurance, nor pension contributions, with employers expected to cover the costs.

What changed?

For July, the grant was available on the same basis as now (the lesser of 80% of pay and £2,500).

August - the CJRS continued to pay 80% of wages

September - the CJRS paid 70% of wages while employers took on the other 10%

October - the CJRS paid 60% of wages while employers took on the other 20%

Throughout the duration of the furlough scheme, it is important to remember that the employee will continue to receive their salary entitlement in full, as set out by the terms of their employment contract.

The CJRS is a grant paid to the employer, and it was this grant which was being scaled back, the calculation being based on the salary paid for any period while the employee was being furloughed.

Learn about the new furlough scheme

Pink hosted an hour-long interactive webinar about the updates to the furlough scheme on Tuesday 16th June. If you were unable to attend the live webinar, you can also access the information here.

Furlough, flexible furlough & managing your payroll webinar