With the current situation we are in, everything is becoming rather confusing. This of course includes the Government’s Flexible Furlough Scheme. In this blog we will be explaining what flexible furlough is and what it means for businesses.
SCS Financial Management provides professional financial support, including COVID-19 related matters, to anyone who requires it.
What Is Flexible Furlough?
Flexible Furlough is a new government grant scheme designed to stop people from losing their jobs due to the ongoing pandemic. When the lockdown was fully underway, a lot of businesses were losing money due to a lack of income from not being allowed to work. This led to many small companies questioning whether or not they could afford to keep their employees on and unfortunately thousands of people lost their jobs.
To combat this the Government has set up a retention scheme also known as flexible furlough. This scheme allows employers to claim a grant that will help pay a percentage of their workers’ wages in hopes to stabilise the economy and move the country into “the next stage of recovery.” It was set up from June 1st and is available until the end of October. This is a month earlier than previously announced.
Can Furloughed Employees Return?
Employees under furlough can definitely return to work with part-time hours or on selective shifts. In fact, the government is encouraging this and is the reason over 9 million jobs have been saved so far. All businesses are able to decide whether or not they want their employees to return to work and how many hours they will be doing. As normal the retention scheme will still pay 80% of workers’ wages for any hours they haven’t worked but usually do.
All hours will need to be discussed and agreed with by employees before writing down that they are on flexible furlough. Once they have completed their hours, employers will have to provide them with full pay for the hours they have done. The grant issued by parliament will then provide 80% of the wage they would normally get for the hours they have missed.
Which Employees Can I Claim For?
Only employees who have been previously furloughed for a minimum of 3 weeks are eligible for flexible furlough. This also has to have been between the 1st of March and the 30th of June. Any worker who has not been previously furloughed during this time, will not be eligible for any grant. If an employee still isn’t ready to come back to work but is eligible for flexible furlough, then they will still be given the full furlough. Parliament does not want to force people back to work, especially during these unprecedented times.
These agreements can last anytime once the employee has accepted the terms. This will give confidence to companies who may be struggling for funds and need that extra reassurance to keep running their business.
Do Your Research
The retention scheme is very complex and to many people far too confusing. That is why we advise all business owners to continuously research their options with flexible furlough and plan ahead their claims. Any errors can be detrimental to your finances, so take a look at relevant articles and websites, contact other businesses to see how they are handling it.
If you are still struggling with the furlough scheme, then SCS Financial Management is here to help at all times. Our team can offer professional advice and guidance on how to maintain your finances during the current climate.
As mentioned before our dedicated team offer professional financial services across Reigate, Surrey and the surrounding areas. We cater for all businesses and offer a bespoke service to all of our clients. Get in touch with us today on 01737 373707. Alternatively, you can fill out the contact form on our website.