As you may be aware, the government announced in early May that the CJRS would be extended until the end of July and on a reduced level until October 2020.
Chancellor Rishi Sunak has since announced updates to the Coronavirus Job Retention Scheme which are set out below, though please note we are waiting for the Treasury direction to be amended to reflect these changes. It has been announced:-
- 10 June 2020 will be the last day that employers can place employees on furlough (as they must be on furlough for at least 3 continuous weeks by 30th June). The scheme as it stands, i.e. the government paying 80% of employee's wages up to a maximum of £2,500 per month, will continue throughout June and July.
- From 1 July, 'flexible furlough' is being introduced, which means employers can bring employees back to work that have previously been furloughed for any amount of time and any shift pattern, 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 one month earlier than planned.
- From 1 August, furloughed employees will continue to be entitled to 80% of their wages (or more depending on what has been agreed) however employers will be asked to cover the National Insurance and Employer Pension Contributions as these will no longer be recoverable from CJRS.
- From 1 September, the government will reimburse 70% of salary (up to a maximum of £2,190). Employers are required to top-up to the figure that was agreed with the employee i.e. 80% or more.
- From 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
- The furlough scheme will close on 31 October 2020.
We understand further guidance on flexible furloughing will be published on 12th June 2020. If you have any queries in the meantime, please do not hesitate to contact our employment team on email@example.com or by telephoning 029 2009 5500. Alternatively, click here to request one of our team to call you back.