How to calculate your claim for flexibly furloughed employees.

The Government has published a “flexible furlough” working example, which sets out how employers should calculate claims for grants under the Coronavirus Job Retention Scheme when part furloughing employees from 1 July 2020.

The example is not the easiest to follow but in summary, it sets out that from 1 July 2020 employers will claim a pro rata’d amount of 80% of salary based on the proportion of hours not worked out of normal working hours. The example can be found by clicking here.

Calculating the normal working hours for those with fixed hours/pay is done by taking the number of hours worked in the pay period before 19 March 2020 and when calculating the normal working hours for those with variable pay, you take the higher of (a) the average number of hours worked in the tax year 2019 to 2020 or (b) the corresponding calendar period in the tax year 2019 to 2020.

For a more detailed summary of the changes to the Coronavirus Job Retention Scheme which will take effect between now and October 2020, please see our previous blog here

The Employment Team at MLP Law can help you with any of issues raised in this update. Just contact us on 0161 926 9969, employment@mlplaw.co.uk or on our employment law-specific Twitter account @HRHeroUK.