CJRS (Coronavirus Job Retention Scheme/Furlough) Extended Until December31 Oct 2020 // Insights
The Government has announced that the Coronavirus Job Retention Scheme ('Furlough Scheme') will remain open until December 2020.
People and businesses across the UK are being provided with additional financial support as part of the Government’s plan for the next phase of its response to the coronavirus outbreak, the Prime Minister announced today (31 October). It was announced that the CJRS will now run until December, delaying the introduction of the Job Support Scheme.
- The Furlough Scheme will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500.
- Employers small or large, charitable or non-profit, are eligible for the extended scheme.
- Businesses will have the flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time.
- The extended Furlough Scheme will operate as the previous scheme did, with businesses being paid upfront to cover wage costs.
- As under the current scheme, flexible furloughing will be allowed in addition to full-time furloughing.
- The Job Support Scheme, which was scheduled to come in tomorrow (1st November), has been postponed until the Furlough Scheme ends in December.
- All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the scheme.
- Employees must have been on an employer’s PAYE payroll by 23:59 on 30 October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
- Employers will be able to agree any working arrangements with employees.
- 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. Such calculations will broadly follow the same methodology as under the current scheme.
- When claiming for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
- Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
- For hours not worked by the employee, the Government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
- Employers will pay employer NICs and pension contributions and should continue to pay the employee for hours worked in the normal way.
- As with the current scheme, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
- Further details, including how to claim this extended support through an updated claims service, will be provided shortly.
- Clarity will be required on issues such as those employees already serving notice of redundancy and whether terminations can be put on hold.
Should you have any queries on the above or require any employment related advice, please contact Fiona Mendel at email@example.com or on 020 7725 8033 or Helen Crossland at firstname.lastname@example.org or on 020 7725 8034.
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