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Coronavirus FURLOUGH SCHEME: FINAL COUNTDOWN FOR furloughing

Midnight tonight, Wednesday 10 June 2020, is the last possible opportunity for employers to place new employees onto the furlough scheme.

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Published 10 June 2020

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Midnight tonight, Wednesday 10 June 2020,  is the last possible opportunity for employers to place new employees onto the furlough scheme.

The scheme is closing to new entrants, i.e. employees who have not yet been furloughed, on 30 June 2020. From that date onwards employers will only be able to furlough employees they have already furloughed for a full 3-week period (which is the minimum furlough period allowed by the scheme). Counting backwards, that means that 10 June 2020 is the last possible date on which an employee who has not previously been furloughed can be put on furlough.

If an employee has not been furloughed by 10 June 2020 their employer will permanently lose the chance to take advantage of the scheme in respect of that employee.

The scheme has been extended to 31 October (albeit in a different form from the current scheme – we have circulated a separate bulletin on this point), so it is entirely plausible that at some point between then and now an employer’s position may change meaning that they do need to utilise the furlough scheme after all. If that is a position an employer would like to reserve, they need to register new entrants now and furlough them for a full three weeks before 30 June 2020.

For the avoidance of doubt, even if an employer only wants to use ‘flexible furlough’, which starts on 1 July, that employer needs to fully furlough any employees they have earmarked for flexible furlough by 10 June 2020.

If you would like any bespoke advice on how to utilise the furlough scheme for the benefit of your business, or for any other employment matter, please contact our Employment lawyers for up to 30 minutes’ free advice.

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Shorter Reads

Coronavirus FURLOUGH SCHEME: FINAL COUNTDOWN FOR furloughing

Midnight tonight, Wednesday 10 June 2020, is the last possible opportunity for employers to place new employees onto the furlough scheme.

Published 10 June 2020

Associated sectors / services

Authors

Midnight tonight, Wednesday 10 June 2020,  is the last possible opportunity for employers to place new employees onto the furlough scheme.

The scheme is closing to new entrants, i.e. employees who have not yet been furloughed, on 30 June 2020. From that date onwards employers will only be able to furlough employees they have already furloughed for a full 3-week period (which is the minimum furlough period allowed by the scheme). Counting backwards, that means that 10 June 2020 is the last possible date on which an employee who has not previously been furloughed can be put on furlough.

If an employee has not been furloughed by 10 June 2020 their employer will permanently lose the chance to take advantage of the scheme in respect of that employee.

The scheme has been extended to 31 October (albeit in a different form from the current scheme – we have circulated a separate bulletin on this point), so it is entirely plausible that at some point between then and now an employer’s position may change meaning that they do need to utilise the furlough scheme after all. If that is a position an employer would like to reserve, they need to register new entrants now and furlough them for a full three weeks before 30 June 2020.

For the avoidance of doubt, even if an employer only wants to use ‘flexible furlough’, which starts on 1 July, that employer needs to fully furlough any employees they have earmarked for flexible furlough by 10 June 2020.

If you would like any bespoke advice on how to utilise the furlough scheme for the benefit of your business, or for any other employment matter, please contact our Employment lawyers for up to 30 minutes’ free advice.

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