Employer to contribute 25% towards furlough scheme from august

Grumpy_chap

Some employers are using CJRS (job retention scheme) to fund redundancy notice pay.  Entirely not what the scheme was set up for.

Some employees are finding it such a 'cushty little number' being at home on 80% that they are finding every reason not to go back to work.  Again, not what the scheme intended.

unholyangel

ToxicWomble said:

The longer this goes on, the more I think there is a lot more that we aren’t being told.
Lockdown was always about protecting the NHS - yet according to the chart shown on today’s briefing, only 35% of ventilator beds have been used - and that was at the peak.
Death rate whilst high in numbers is small in % terms and yet they insist on following this course of action that will destroy the economy and people’s lives for years to come.
I suspect the death rate will be much higher due to people not receiving the medical care they deserve for other ailments.
Its all very fishy 

Could that be because lockdown measures were successful? 

Alter_ego

daveyjp said:

How is it being abused?

I've read that some employers are expecting people to work during furlough (for them)

sharpe106

I would have a better system would be the  employer needs to pay say 20% for each day they want the employee back. So for example 2 days, the government pays 40% and the employer pays 40%. 4 days the employer pays all 80% and when back to 5 days back to normal pay. 

PixelPound

The Treasury will reportedly direct employers to cover between 20% and 30% of an employee’s wage, and firms will also pay their national insurance contributions, which to about 5% of wages.

https://www.theguardian.com/politics/2020/may/23/uk-firms-to-be-asked-to-pay-part-of-furloughed-staffs-wages-from-august

I doubt this means employees will start getting 100%, more likely the treasury will fund 50% with employer to top up and pay NI.

Though why August, why not July, that's still 5 weeks to arrange to restart. It is a pity it isn't a sector related change, because some sectors can reopen a lot sooner than others.

aayush

I have been on furlough but know some of the staff working from home thus not sure if furlough or on full salary now got to know the have been at work in office since last week I have not been asked to go in  will need to wait for an email or call from HR but hear staff been made redundant as well 

sharpe106

aayush said:

I have been on furlough but know some of the staff working from home thus not sure if furlough or on full salary now got to know the have been at work in office since last week I have not been asked to go in  will need to wait for an email or call from HR but hear staff been made redundant as well 

A lot of people will be in the same boat, if you ignore the sectors that had to shut. The majority of others claiming furlough either the companies did not need to or they have just pushed redundancies down the road. If anything it may cost more jobs then it saves, a lot of companies have furloughed part of the workforce to save a bit of money and the work is still getting done so will be thinking they don't actually need those people. 

Thrugelmir

Grumpy_chap said:

Some employers are using CJRS (job retention scheme) to fund redundancy notice pay.  Entirely not what the scheme was set up for.

Explain how? 

Grumpy_chap

So, they serve notice and make the job redundant.  You get paid the notice pay, but the employer claims 80% of this back from the Government.  So CJRS, rather than retaining jobs, accelerates the redundancy.

Splatfoot

Grumpy_chap said:

There is nothing announced on this yet, and I doubt a significant announcement will be made until the next working day, i.e. Tuesday.  Everything else is speculation - another news article I read said employers would need to contribute 30%.  What we do know is that the change is not until after July.

Maybe it should be that employees get 100% and the scheme can only be used if employers top up whatever proportion the Government don't pay (on a reducing basis) and staff can work in the proportion that the company is paying.

The sooner they reduce the cost of the scheme, and the other coronavirus schemes the better.  The longer the schemes operate, the more people / companies find ways to abuse them and use for unintended purposes.  All we know so far is that there is a magic money tree and Jeremy told Boris where it is.

Teresa had one of those. She's passed it on.