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The end of the furlough scheme – all you need to know

Put this on your calendar - Muddy tells you everything you need to know as an employer or an employee as the scheme rolls to an end

You know how you rely on Muddy for all that’s new, funky and, quite frankly, absolutely vital in your life? Could be fashion, beauty or restaurants, or wellbeing, work or jobs. Well, we’ve done it again – we’ve picked the brains of the fabulous Anna Gage at HR gurus Edelweiss HR, to clarify what the end of the furlough scheme means for employers and employees. Whether you are continuing to WFH or are heading back into the office, this is what you can expect.

1 September 2020
Employees can continue to work but there will be a reduction of grant available from 80% up to £2,500.00 for hours not worked to 70% up to £2,187.50. Employers must top up the 10% difference.

In summary:

  • From 1 to 30 September the government will pay 70% of furloughed employees wages up to a cap of £2,187.50 for hours not worked
  • Employers will pay 10% of wages to make up 80% total, up to a cap of £2,500.00, plus employers’ total NICs and pension contributions

1 October 2020
There will be another reduction of grant available from 70% up to £2,187.50 for hours not worked to 60% up to £1,875.00. Employers will top up the 20% difference.

In summary:

  • From 1 October until the end of the scheme on 31 October the government will pay 60% of wages up to a cap of £1,875.00 for the hours the employee does not work.
  • Employers will pay 20% of wages to make up the 80% total up to a cap of £2,500.00 plus employers’ total NICs and pension contributions.

In these strange times, even more than before, many companies, big or small, are not able to run their own full-time HR departments. Here is where Edelweiss, the brainchild of experienced HR-guru Anna Gage, comes in. Edelweiss have tailored their service to provide access to the best HR support possible, providing you with peace of mind in the most cost-effective way.

As qualified HR Professionals, they understand your business and provide you with realistic, logical and cost-effective solutions to drive your commercial success. They will build long term relationships with you and your team, aiming to increase your employee engagement and performance. Plus, as your outsourced HR team, they invest time to get to know you and your people personally, establishing sound, reliable and efficient HR processes which you can trust and which underpin business growth.

Their approach to HR is commercial HR advice with empathy – which is incredibly important at this time, more so than ever. If a business owner is having to take tough decisions and consider potential redundancies, this is the team to help. They take the wellbeing and mental health of their clients and their employees very seriously, and have a great deal of experience in supporting wellbeing in the workplace. 

For all your queries, whether to do with the furlough scheme, redundancies or beyond, get in touch here.

www.edelweisshr.co.uk, 07811 208323 / 01285 831328

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