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Flexible Furlough

By Niamh Kelly

2020-06-04

Flexible Furlough – it’s all change for the Government scheme!

The UK Government’s job retention scheme has helped many people (8.4 million at the last count) to remain in employment throughout the COVID-19 crisis by placing them on furlough and subsidising 80% of their wage.

Last week, the Chancellor announced new terms of the scheme and as my phone hasn't stopped ringing .. I thought it would be useful to pick up some of the 'frequently asked questions' around the Flexible Furlough Scheme, Track and Trace, (and while we're on the subject of absence from work).. what Employers need to know about 'Quarantine’

From 1st July employers will have the maximum flexibility possible when it comes to furlough. So what does that actually mean?

At the moment, you can furlough any member of staff and claim 80% of their normal pay; so long as you have agreement in writing AND they have been furloughed for a minimum of 3 weeks at a time (and of course, all the other requirements about being on the payroll at a certain date and so on). 

Some employers have 'rotated' furlough .. so asking staff to be off for 3 weeks, come back to work for a few days while another member of staff is off for 3 weeks.

If staff haven't been on at least 1 x 3 week period of furlough by the 1st July, then they won't be eligible for the flexible furlough scheme.

Example 1:

Harry and Ron work for Company A and have been on furlough on a rotated basis since the beginning of April.  From July, their employer wants Harry to work 2 days per week but be furloughed for 3 days; and Ron to work 3 days and be furloughed for 2 days.

Because both have been furloughed prior to the end of June, then (subject to the usual caveats about written agreements etc), they would be eligible for flexible furlough.

Example 2:

Jo and Amy work for Company A but only Jo has been furloughed.  Amy has continued to work throughout.  From July, their employer wants Jo and Amy to share the working week - Jo to do 2 days on and 3 days furloughed;  Amy to do 3 days on and 2 days furloughed.

Unless Amy is placed on furlough for a minimum of 3 weeks before the end of June 2020, she will not be eligible for flexible furlough... and this is where the 10th June is key.. because the end of June (30th June) is exactly 3 weeks from the 10th June.

In other words - if Amy is not place on furlough a) on or before the 10th of June and b) for a minimum of 3 weeks - she can't get flexible furlough in July (and following).

So - if they're not in - you can't win!

Example 3

Anne was furloughed for April (ie over 3 weeks) from Company A but has been back at work since.  Her employer thinks the work is decreasing and would like to have her on flexible furlough with Ron and Harry from July.

Because Anne was on furlough at some point up to the 30th June (even though it was in April), she will be eligible to be furloughed under a flexible arrangement from July onwards.

Example 4

Company B has never had anyone on furlough but would like to use the flexible furlough scheme.  

The same rules apply - they must place employees on furlough on or before the 10th June to be eligible.  From the 1st July, the scheme will only be open to employers who have previously furloughed staff for a minimum of 3 weeks

KEY Points:

• if neither your company/your employees have been on the furlough scheme on or before the 10th June, you can't use the new scheme from 1st July
• you can have employees on any shift pattern and any amount of time on furlough from 1st July (subject to the above).. hence 'flexible'
• you must agree any new flexible furlough arrangement with your employees and confirm that agreement in writing (HR's golden rule - put it in writing!)
• more details including how you should calculate claims will be published on 12th June

Test & Trace

On 28th May a system to test those with symptoms of COVID-19 and then contact people they have been in contact with was introduced in England (with a similar system in Scotland and Northern Ireland, and the equivalent Welsh scheme is due to start in early June 2020).

The test and trace scheme currently involves those with symptoms receiving a test for COVID-19, and then contact tracers will help to trace recent contacts of the person (based on information from the person who has tested positive) with a view to the contacts also self-isolating for a period of 14 days.

The effect of this from a HR perspective is that it expands the category of people required to self-isolate... which is going to have a 'knock on' effect on absence levels.

Here are the main points:

• Employees who are required to self-isolate on this basis are entitled to statutory sick pay (SSP).  For some people is going to be a lot less than what they would normally earn; so the guidance advises they should be given the opportunity to use their annual leave if they prefer.
• The introduction of test and trace does not change the existing guidance on working from home wherever possible.
• Where an employee who has developed symptoms identifies colleagues as close contacts who may have been infected, the employee may wish to (but is not obliged to) ask their employer to alert those co-workers.
• Prior to receiving the test result, those identified as having come into contact with the person with suspected infection are not required to self-isolate but they should ensure that they avoid those who are high risk of contracting COVID-19 and take extra care in practicing social distancing and good hygiene, and watch out for symptoms. The guidance does not clarify how an employer should deal with this scenario but it seems that an employer which becomes aware that a worker has developed symptoms and has been in contact with colleagues, will need to consider its health and safety obligations in terms of whether it requires those colleagues to remain at home until the worker with symptoms has received their test result!

And finally (and this is the KEY point): 

• The notification from NHS test and trace instructing an individual to self-isolate due to contact with an infected person will be sufficient as evidence of sickness for SSP purposes   and will be necessary in order to allow the employer to obtain a rebate for SSP.

And lastly ….Quarantine!

In the middle of all of this, came 'quarantine' for travellers from overseas (with some exceptions).

A client called me when this was announced, with a query from a member of staff.  The employee had found a terrific deal on 2 weeks in the Algarve and had booked it for £99.  Not withstanding that they hadn't actually requested the annual leave before they booked their break; they were now calling their employer to ask for not only the 2 weeks annual leave.. but could the employer pay them for the 2 weeks they would have to 'self isolate' on their return because they would have to quarantine!

The answer is 'no' for many reasons:

• the Government has advised against all but ESSENTIAL travel (so be careful if you are asking employees to travel for work outside the UK unless absolutely necessary).  I appreciate that although we might all love a break to Portugal.. it's not essential travel!
• they would not be asked to self isolate because they have come into contact with an infected person (Track and Trace); but because they are quarantined - so no SSP

So the moral of the story is; the employer can ask staff to take 4 weeks annual leave if they do head off on their holidays to a quarantined area.. or unpaid leave..

Maybe this year we should all consider having our holidays in the great UK outdoors!

About the author:

© Níamh Kelly – Director of The HR Dept Shropshire – is  an award winning HR professional with over 25 years HR experience at a Senior level in the corporate, public and voluntary sector.  Working with SMEs across the County; The HR Dept – Shropshire has rapidly developed a very strong client base of local companies.   So if you have a question about Recruitment & Right to Work; to Resolving Problems; to Redundancy… she’s here to help you!