Coronavirus Job Retention Scheme – update

The Coronavirus Job Retention Scheme (CJRS) will now run until 31st October 2020. The Scheme will remain as it is until and including 30th June then the following changes will come into effect...

1st of July

• The CJRS will become flexible and businesses can bring employees on and off furlough.

• The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June. This means that the final date by which an employer can furlough an employee for the first time will be the 10 June, for the current three-week furlough period to be completed by 30 June.

• From 1 July, claim periods will no longer be able to overlap months, employers who previously submitted claims with periods that overlapped calendar months will no longer be able to do this going forward.

• Employers will have until 31st July to make CJRS claims for periods up to 30th June.

• Businesses will pay wages in full for the period the employee is un-furloughed but can claim under CJRS whilst the employee is furloughed.

• Employers will need to provide details of the usual hours an employee is expected to work as well as the actual hours worked.

• Any working hours arrangement between the employer and employee must cover at least one week and be confirmed in writing to the employee.

• When claiming for the furloughed hours the employer will need to report and claim for a minimum 1-week period.

• The employer can claim over a longer period such as 2 weekly or monthly cycles.

• June and July, businesses can continue to claim the full 80% of wages re furloughed employees under the Scheme.

1st of August

• The CJRS claim remains at 80% of the salary/wages. However, businesses will meet the employer’s pension contributions and employers NI.

1st of September

• The Government will meet 70% of the wages up to £2187.50. The remaining 10% to be met by the employer, plus the employer’s pension and the employer’s NI.

1st of October

• The Government will meet 60% of the wages up to £1875. The remaining 20% to be met by the employer, plus the employer’s pension and the employer’s NI.

1st of November the CJRS comes to an end.

Further information on calculating the flexibility CJRS claims will be made on 12th June.

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