From July, UK employers can bring employees back to work from furlough “flexibly”. This means that employees can agree to return to work on a reduced hours’ basis, and be paid for that work by their employer, and remain on furlough for the remainder of their working time, and be paid for that period at their furlough rate of pay. This is known as “flexible furlough”. Employers can apply for a reimbursement of payments made to employees while on furlough, up to UK Government limits.
The manner in which flexible furlough pay is calculated, though, is particularly complex. For large employers especially, working this out will take some time and patience to work through. The Government has produced 30 example calculations and a calculator to help employers crunch the numbers.
Before you embark on the calculations, here are some key considerations: