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Changes to the Coronavirus Job Retention Scheme

1st June 2020

 

Flexible furloughing 

• From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time, while still being able to claim CJRS grant for their normal hours not worked.

• When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week. This is a minimum period and those making claims for longer periods such as those on monthly or two weekly cycles will be able to do so.

• To be eligible for the grant, employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing. 

• Employers can claim the grant for the hours their employees are not working calculated by reference to their usual hours worked in a claim period. Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.   

 

 Closure to new entrants from July

• 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, in order for the current three-week furlough period to be completed by 30 June. Employers will have until 31st July to make any claims in respect of the period to 30 June.

• The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the current CJRS

 

Employer costs

From August 2020, the level of the grant will be slowly tapered to reflect that people will be returning to work.

• In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee doesn’t work. Employers will have to pay employees for the hours they work.

• In August, the government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work.

• In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. 

• In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. The cap will be proportional to the hours not worked.

• As with the previous scheme, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.

 

Please contact us if you have any questions.

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