Re-Furloughing after some Seasonal Work

AnnaJW

We have the opportunity to offer some of our employees several weeks of full time work over July and August. The work comes in full week blocks, so they could not be paid part time, with some furlough pay still. This will finish by the end of August. Can we put them back on furlough, as they were already registered under the scheme, or is this not possible after we have not claimed for them for 6 or 7 weeks?
 Our work is seasonal at the best of times, we are unlikely to have work for them in the autumn like we normally would. If there is work, then it would be part time and so could be covered by the part time furlough in this way. 
Many thanks for any help. 

Jeremy535897

"Prior to 1 July 2020, employees on furlough cannot undertake any work for you other than training. From 1 July, you will:

• only be able to claim for employees who have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June
• be able to flexibly furlough employees – this means you can bring your employees back to work for any amount of time, and any work pattern
• still be able to claim the furlough grant for the hours your flexibly furloughed employees do not work, compared to the hours they would normally have worked in that period"

From https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme

[Deleted User]

As per Jeremy's post above yes you can put them back onto furlough, however it is also important to remember that furlough will begin to cost you in August and will get progressively less generous. That may mean that if you do not have work for the people you employ through autumn (and potentially winter?) and will not for several months you might well have to look at the prospect of redundancy to save the business. 

https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme

For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.

er's NIC is 14%, pension contributions are probably in the region of 5%, so a total cost of 19%. If you are topping up to 100% then a cost of 39% of salary. 

For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

The 10% minimum top up, er's NIC is 14%, pension contributions are probably in the region of 5%, so a total cost of 29%. If you are topping up to 100% then a cost of 49% of salary.

For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
The 20% minimum top up, er's NIC is 14%, pension contributions are probably in the region of 5%, so a total cost of 39%. If you are topping up to 100% then a cost of 59% of salary.

AnnaJW

Jeremy535897 said:

Brilliant thank you, I couldn't find wording this clear. That's a great help, and gives us options to consider. Many thanks

AnnaJW

MadMattUK said:

As per Jeremy's post above yes you can put them back onto furlough, however it is also important to remember that furlough will begin to cost you in August and will get progressively less generous. That may mean that if you do not have work for the people you employ through autumn (and potentially winter?) and will not for several months you might well have to look at the prospect of redundancy to save the business. 

Yes thank you. Many staff will be being made redundant unfortunately. Hopefully this gives us more options to do the best we can for them. Many thanks for your help