The new Flexible Furlough Scheme comes into effect this week, from the 1st July, and under the guidance, employers are required to keep a “new written agreement” to formalise when they wish to make use of the greater flexibility this new scheme provides. One of the key differences is that there will no longer be a minimum period of furlough (previously three weeks).

The new scheme offers employers a much more flexible approach to returning their employees to work and the main points to note are:

  • Employers may only benefit from the new scheme for staff they have already furloughed for a minimum of three weeks under the original CJRS scheme (with the exception of employees returning from some forms of parental leave)
  • Staff may be asked to work any pattern of their normal working hours, for instance, a few hours a week, one week on one week off, part days. For the hours the employee works they will be paid in full, and the remaining unworked hours of the contract may be claimed by the employer via the furlough scheme.

If you are proposing making the most of the terms of this new scheme and need further advice or are interested in purchasing a new template furlough agreement, please contact Vivienne Tolley on vivienne.tolley@smithcooper.co.uk.

Our detailed summary of the government guidance can be seen in our earlier post from Laura Parr, Head of Employment Tax.