Extension to the Coronavirus Job Retention Scheme
The below information is correct as at 19th June 2020
The Coronavirus Job Retention Scheme (CJRS) has been hugely beneficial in helping small employers keep their staff in work and now there are important changes being implemented from 1st July 2020.
The cut-off date for workers being furloughed for the first time was 10th June to allow the minimum three week period to be completed by 30th June.
From 1st July 2020, flexible furloughing is being introduced as a change to the CJRS. This will enable those furloughed to get back to work – even just on a part time basis. Employers can continue to fully furlough if they wish.
If employers do introduce flexible furloughing, they should have a new written agreement which confirms this new arrangement and this communicated to their employees – please note, the employee is not required to provide a written response.
During flexible furlough, when employees are on a period of furlough, they must not carry out any work which makes money or provide services for the organisation or any organisation linked or associated with the their organisation
From 1st July, there is no minimum furlough period – employers can bring back to work their employees for any amount of time and on any shift pattern. They will be able to claim the CJRS grant for their normal hours that are not worked.
Change to Claims
It is also important to note that for June and July, the government will continue to pay 80% of wages up to the cap of £2,500.
This changes from 1st August whereby the level of grant provided will be reduced as people start to return to work.
In August, employers will be required to pay employer National Insurance contributions and pension contributions. From September, they will be required to contribute towards wages too..
- 10th June – If employees are being furloughed for the first time, this is the last date in which they are eligible to do so. They will be able to continue to be furloughed or flexibly furloughed until the end of October
- 30th June – If anyone has not been furloughed for three weeks before this date, the scheme closes.
- 1st July – Flexible furloughing begins and the CJRS will cover usual hours not worked.
- 31st July – Final date to submit claims for furloughed staff before 30th June
- 1st August – Employers now pay National Insurance and pension contributions for furloughed employees.
- 1st September – Employers now pay 10% of furloughed wages up to £312.50, plus NI and pension contributions. Government contributions will be 70% up to £2,187.50.
- 1st October – Employers now pay 20% of furloughed wages up to £625.00, plus NI and pension contributions. Government contributions will be 60% up to £1,875.00
- 31st October – Scheme closes
Should you have any queries regarding the above and how it could affect your business, please do not hesitate to contact us.
The information in this article is believed to be factually correct at the time of writing and publication, but is not intended to constitute advice. No liability is accepted for any loss howsoever arising as a result of the contents of this article. Specific advice should be sought before entering into, or refraining from entering into any transaction.