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Employment Alert – Employers required to contribute towards furlough pay from today


Employers required to contribute towards furlough pay from today

What’s happening?

From today, employers will be required to contribute a proportion of pay for the unworked hours of their furloughed employees.

Why is this important?

Why is this important?

For unworked hours in July, employers will need to contribute 10% of each furloughed employee’s wages. This is in addition to the national insurance and pension contributions that employers are already required to pay.

Remember: the amount of employer contributions will increase to 20% in August and September and the furlough scheme is due to end on 30 September 2021.

If employees are on flexible furlough, employers must continue to pay them for any worked hours in accordance with the employee’s employment contract.

Claims for furlough days in June 2021 must be submitted by 14 July 2021.

What should you do?

What should you do?

For those employees who remain on furlough leave:

  • Check the furlough agreements are up to date and effective
  • Ensure claims for furlough days in June 2021 are submitted by 14 July 2021
  • Ensure you are paying the correct contributions towards furlough pay, to include the 10% contribution from today
  • Budget for the increased cost for July, August and September. Keep this under review and consider how you will proceed if you do not wish to keep staff on furlough leave as the costs increase
  • If staff return to the workplace following furlough, ensure that there is a plan in place for their reintegration. Ensure your risk assessments are kept up to date and that these are communicated to staff

If you need more information please contact us on 0800 2800 421 or email [email protected] to find out how we can help.

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