From 1 July 2020, employers can bring employees, who have previously been furloughed, back to work for any amount of time and any shift pattern if some work is available but not enough to return an employee from furlough. Under flexible furlough, a line manager can agree a temporary working pattern with an employee, in which the employee would work some days, or parts of days. For example, you may be asked to work 5 half days a week for a period of time, or different hours, different days, or for an odd day or two. There is no minimum or maximum number of hours that you must work.
Only employees who have previously had a period of furlough leave of at least three weeks, at any time, will be eligible to be placed on flexible furlough. There is one exception – parents on statutory maternity leave who plan to return to work in the coming months are eligible as well, and this also applies to leave for shared parental, paternity, adoption, and parental bereavement.
Restore will continue to review staffing requirements in light of the option to place eligible employees on flexible furlough. If a line manager identifies an instance where it may be beneficial to the business, they may approach you about the possibility of you becoming flexibly furloughed, and together, you will consider an appropriate working pattern.
Where a flexible working pattern is agreed between you and your line manager under the scheme, you will be notified in writing that you have been designated as a flexibly furloughed employee, along with the length of time that the arrangement will remain in place. If you believe that flexible furlough would be beneficial to you and the Company, then you may wish to raise this with your line manager, who can discuss the possibility of it with you.
It is important to note that being able to carry out flexible furlough still relies on work being available to be offered.
Under the scheme, you will be paid full contractual pay for any normal working hours you work, and furlough pay of 80% of your contractual pay for any hours you do not work up to your normal contractual weekly hours of work.
Example of Calculating Pay for Furloughed Hours
This example has been included to illustrate the full sequence of steps that Restore will take when calculating pay for furloughed hours. It has been based on a common scenario in which an employee has a fixed monthly salary, fixed working hours, and is flexibly furloughed. This scenario may not be directly relevant to you, though it may be helpful to see an illustrative example of a full calculation.
Hannah has worked for Restore since 2016, working 40 hours a week for a monthly salary of £3,000, paid calendar monthly. Hannah was furloughed on 25 April 2020, From 1 July 2020, Hannah is asked to return to work half-days. Pay has not been topped up and there is no bonus, commission or other additional pay.
As they prepare to pay employees for the end of July, Restore calculates the gross monthly payment for Hannah’s furlough hours (for 1 to 31 July).
To begin with, as Hannah is flexibly furloughed from 1 July, Restore works out her usual hours. Hannah has fixed hours and a salary that does not vary by the number of hours worked so the calculation is:
- The number of hours Hannah was contracted for at the end of the last pay period ending on or before 19 March 2020. This was 40 hours per week.
- Divide by the number of calendar days in the repeating working pattern. It is a weekly pattern, so divide by 7. 3.
- Multiply by the number of days in the pay period. 31 days in July, so multiply by 31. 4.
- Result is 177.14, rounded up to 178.
Hannah’s usual hours for the month of July is therefore 178 hours.
Next, Restore calculates the number of working hours and furloughed hours. Hannah will work 23 half days, each of 4 hours, so working hours are 92. Furlough hours are calculated as:
- Number of usual hours, 178
- Subtract the number of actual hours worked, so subtract 92 = 86 furlough hours.
Hannah was therefore on furlough for 86 hours.
After that, Restore works out the 80% of the usual wage.
Restore calculates the maximum wage amount. Hannah is furloughed throughout July so there are 31 furlough days. As Restore will claim for the pay period which is a whole month, the maximum wage amount is £2,500. Hannah is on fixed pay, so the calculation is:
- Hannah’s wages from her last pay period before 19 March = £3,000.
- Multiply by 80% = £2,400.
As Furlough pay for flexibly furloughed employee is the lesser of either 80% of usual wages (here it is £2,400) or the maximum wage amount for July (here it is £2,500), Restore therefore uses £2,400.
Finally, Restore works out how much Hannah is entitled to receive for her furloughed hours.
- Multiply Hannah’s maximum wage amount, £2400, by Hannah’s furloughed hours, 86. 2.
- Divide by Hannah’s usual hours, 178 = £1,159.55.
Hannah should therefore be paid £1,159.55 for the hours that she was on furlough in the month of July.
Separately, Restore will also work out how much Hannah is entitled to receive for the hours that she worked in July. By combining the two amounts, Restore will have calculated Hannah’s monthly pay for July.